Last week South Africa entered into a technical recession, sending confidence into a downward spiral.
CapeTalk's John Maytham spoke to Isaah Mhlanga, an economist at Rand Merchant Bank, about the drop of confidence in the business sector.
We are now in an uncharted territory. We last saw such despondency during the 2009 recession.— Isaah Mhlanga, Economist, Rand Merchant Bank
Mhlanga explains that should business confidence continue at its current levels, South Africa is likely to register negative growth for the remainder of the year.
Eleven points decline is really big. Also all five sub sectors declined on the quarter.— Isaah Mhlanga, Economist, Rand Merchant Bank
Mhlanga says the downfall in confidence and growth is influenced by political activities. He adds that the manufacturing sector, which is an important economic driver, is likely to take the biggest blow.
Listen below for the full analysis: