Business pessimism prevails

In the face of a rash of
challenges, business
confidence in Gauteng is
plumbing new depths.
Volatile labour relations,
low productivity levels and
skills shortages have all
contributed to the shrinking
economy, with a reported
decrease in GDP growth of
0.7% during the first quarter
of the year on the back of the
0.3% contraction in the last
quarter of 2016.
According to Statistics
South Africa, the largest
negative contributor to
growth in GDP in the first
quarter was the trade,
catering and accommodation
industry, which decreased by
5.9% and contributed -0.8
of a percentage point to GDP
growth. The manufacturing
industry contracted by 3.7%
and contributed -0.5 of a
percentage point.
CEO of the Johannesburg
Chamber of Commerce
and Industry (JCCI), Joan
Warburton-McBride, said
real efforts were being
made in Gauteng to keep
confidence up and support
business.
“There is no doubt that we
are going to face a rough time
over the short to medium
term,” she told FTW. “There
are efforts under way to
assist and support business.
The Gauteng premier
continues to work hard
and has committed to an
infrastructure programme
that will benefit the economy.
There are also many supplier
development programmes in
place from the private sector
that are very heartening as
they showcase the extent and
commitment of companies in
the province.”
She said while there was
no magic wand to repair
the immediate situation,
much could be said for the
innovation being seen at
ground level.