As Ramaphoria wanes so business confidence slides in Q3
Following a new president inspired jump in the RMB/BER Business Confidence Index to 45 in the first quarter, sentiment fell back to 39 in the second quarter and 38 in the third quarter.
Following a new president inspired jump in the RMB/BER Business Confidence Index to 45 in the first quarter, sentiment fell back to 39 in the second quarter and 38 in the third quarter.
South African political commentators have told the UK media that Ramaphoria has dissipated in a little over six months.
South African President Cyril Ramaphosa suffered the same false start as his predecessor nine years ago: a recession in his first six months in office.
So-called Ramaphoria has been waning for a few months now, but this week has really been a thud back to reality for those Saffers still living within the Republic’s borders.
Fast forward through an economically painful Zuma presidency, Ramaphoria needs to be objectively measured by looking at soft and hard data.
The optimism was good while it lasted, but it seems that Ramaphoria has come to an abrupt halt.
The Biznews US Exponential portfolio powered ahead to a 25% gain since launch in November last year as investors celebrated a stronger economy and lower tax rates.
After surging from 34 to 45 in the first quarter, the RMB/BER Business Confidence Index deteriorated to 39 in the second quarter of 2018.
Over the 36 years that the Bureau for Economic Research has compiled quarterly research into how consumers feel about the future, no single quarter’s improvement comes close to the 34 point surge recorded during the first three months of 2018.
Alec Hogg sits down with Martyn Davies, Deloitte’s Managing Director of Emerging Markets in Africa, giving a rather sceptical view of Ramaphoria.