Kaya bizz talking to Siobhan Redford, rmb sa economist
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After remaining unchanged at 28 during the second quarter, the RMB/BER Business Confidence Index (BCI) dropped to 21 in the third quarter. Eighteen months ago, the BCI was at 44. A reading of 21 means an astonishing eight out of every 10 respondents are unsatisfied with prevailing business conditions.
Not even during the height of the global financial crisis in 2009 have executives been this downbeat. In fact, the last time the BCI was at similar levels was in the 1998-1999 Emerging Market debt crisis. Then spillover effects dramatically weakened the rand exchange rate and the prime lending rate, as a result, shot up to an all-time high of 25.5%.
Not even during the height of the global financial crisis in 2009 have executives been this downbeat. In fact, the last time the BCI was at similar levels was in the 1998-1999 Emerging Market debt crisis. Then spillover effects dramatically weakened the rand exchange rate and the prime lending rate, as a result, shot up to an all-time high of 25.5%.
