We will face another recession by year’s end if the Eskom load shedding debacle isn’t remedied, according to forecasts by Bank of America Merrill Lynch.
GDP growth will plummet by year’s end and signal a recession, which is two quarters of sub-zero growth, Michael Jacks, head of equity research in Johannesburg at Bank of America Merrill Lynch, told reporters on March 20 in the city’s Rosebank area.
However, that optimism has been replaced by worries over how much impact Eskom’s load shedding will have on the economy. These needed reforms and others such as downsizing the cabinet may face opposition from within the ANC by factions loyal to former President Jacob Zuma. Sidelining that faction is “critical,” Jacks said. “Just in terms of business confidence, we do need a scenario where we have a strong Ramaphosa where he will push through the reforms.’’“They say ‘call me when something changes. I’m waiting for the election’,” Morris said. “They want to see the reform that brings the growth.
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