The following list of economic constraints and circumstances were prominent in 2008 and will continue to be of concern to business in 2009:
· Constrained household expenditure;
· Balance of Payments imbalances;
· Need for continued net financial inflows;
· Lower inflation and commodity prices;
· Limited fiscal options available; and
· Restrained economic activity.
Threats and actions by labour interests in the present sensitive business climate will be counter productive, have unintended consequences and harm business confidence.
Business conditions will remain tight in 2009 and indications are that the global and domestic economies could only start to lift their performance towards the end of 2009. The pace of improvement might be slower than wished for, but could be more solid and sustainable.
For more information contact:
Mr. Richard Downing Economist for SACCI 082 822 5566
Mr. Neren Rau SACCI CEO 011 446 3800
Released by the South African Chamber of Commerce and Industry, Johannesburg.
13 January 2009