Gauteng Business 2017-18 edition

Green
shoots
give hope for growth
Research done by Standard Bank’s Commercial Banking
division points to some positive medium-term indicators
for the provincial economy.
South Africa’s national economy is under significant
pressure, with the outlook for jobs and
growth uncertain, but green shoots in the economic
heartland of Gauteng show that a growth
rate of close to 2% can be achieved over the next
five years.
Standard Bank’s Commercial Banking division has
conducted extensive research into the sectors and
geographic trends in the Gauteng regional economy,
providing key insights into major trends that
will matter for business activity going forward.
It was announced in the February Budget that the
South African economy, which grew by an estimated
0.5% in 2016, is expected to grow by 1.3%
in 2017 and 2% in 2018 as economic conditions
strengthen. But that was before ratings agencies
downgraded the country’s sovereign debt to junk,
leading to much weaker prospects and cuts in
GDP outlooks by many analysts.
However, the Standard Bank research – which
comes after the downgrades were announced
– shows that all sectors in Gauteng are expected
to perform well in a forecast period of 2016-21,
with the exception of the mining sector (which is
anticipated to further contract by -1.4%).
“The slowdown in mining-based returns and
prospects will continue to bite, but promising
results are earmarked to come from remaining
sectors of the economy which resonates with anticipated
growth projections at a national scale,”
65 GAUTENG BUSINESS 2017/18