An uncertain policy environment combined with labour, credit and infrastructure constraints is holding back South Africa’s economic growth, according to Nedbank chief economist, Dennis Dykes. He told delegates at a business briefing last week that South Africa’s economic growth rate was well below its full potential with gross domestic product (GDP) growth of just under 2.5% projected for 2015 and around 3% GDP growth for 2015. Energy and electricity infrastructure are of particular concern, said Dykes, adding that the elections last week were the first positive sign towards addressing the country’s uncertain policy direction.
