Clients enjoy bank breakfast
The bank, said senior economist, Nicky Weimar, does not expect dramatic job creation and increased household spending.
Nedbank held a client breakfast, featuring an economic presentation by the bank’s senior economist, Nicky Weimar, at Umthunzi Hotel and Conference last Wednesday.
ALSO READ : Organic food and nuts at business breakfast
It was a good mix of guests, ranging from lawyers and teachers to estate agents and B&B owners.
Nedbank, Oribi Plaza’s branch manager, Billy Lategan said that the bank held the breakfast because it wanted to keep abreast of its clients and their changing needs. “It’s also a great way of networking,” he said.
Ms Weimar spoke on ‘The long road to economic recovery’.
To her, she said, the most worrying factor reflected in the latest gross domestic product (GDP) data, which shows that South Africa is in a technical recession, is the sharp decline in domestic trade, a sector that makes up 60 percent of the country’s economy.
She was also worried about weak fixed investment, saying “It shows that companies are not willing to borrow money to expand at the moment.”
Ms Weimar also does not think government spending will drive the country’s economy in the years to come, since government simply does not have the money to spend.
The bank does not expect dramatic job creation and increased household spending, with Ms Weimar believing that ‘house prices and the demand for mortgages will continue to drift sideways’.
“We have been told many things about what land expropriation will not be, for instance that there will be no land grabs and that food security will not be compromised. What we have not been told is how it will be ensured that land expropriation does not spiral out of control,” said MsWeimar.
“If South Africa wants to do better than three percent economic growth, we need policy certainty and structural reform.”
HAVE YOUR SAY
Like our Facebook page, follow us on Twitter and Instagram
For news straight to your phone, add us on WhatsApp 082 421 6033
