Johannesburg Chamber of Commerce and Industry appeals for economic stability
TMG Digital | 2017-04-04 16:31:02.0
“The flow of the economy must not be disrupted – the casualties of these misguided political decisions happen quickly‚ but the recovery is a much more lengthy and unpredictable process.” File photo
Image by: Siphiwe Sibeko/Reuters via The Conversation
The Johannesburg Chamber of Commerce and Industry expressed its “shock” on Tuesday at the country’s sovereign credit downgrade to junk status.
The chamber‚ which represents the interests of key sectors of the economy‚ said the country could “ill afford the ripple effects given the current pedestrian economic growth cycle.
“These include redirecting tax revenues from service delivery-related activities to servicing potentially higher interest rates – compounded by the costs associated with a higher currency exchange rate‚ affecting local and international business confidence in taking long-term investment decisions‚ resulting in job losses and the inability of ordinary citizens to service their normal household debts‚” it said in a statement.
The chamber said it had been working‚ since 2016‚ on strategies to eliminate the threat of downgrades.
It called on political leaders to take decisions with the “sustainability of the macroeconomic stability” as their guiding principle.
“The flow of the economy must not be disrupted – the casualties of these misguided political decisions happen quickly‚ but the recovery is a much more lengthy and unpredictable process.”