'Market confidence in GNU is unwinding in front of our very eyes' – economist

CapeTalk's John Maytham interviews Dr Kenneth Creamer, an economist at the University of the Witwatersrand.

Listen below:

According to Creamer, the discourse surrounding the budget is a reflection of the increasingly misnamed Government of National Unity (GNU).

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Creamer attributes this decline to a poor transition from one ruling party to the current GNU.

"It's quite a serious situation domestically."

- Dr Kenneth Creamer, Economist – University of the Witwatersrand

When the GNU was initially introduced, it was well-received by the markets; the rand strengthened, investor confidence grew, and long-term interest rates fell.

However, Creamer notes that we are now witnessing 'that unwinding in front of our very eyes' as the internal divisions within the GNU become more apparent.

Regardless of how the GNU ultimately unfolds, Creamer emphasises that it is crucial for growth to remain central to the government’s agenda if South Africa is to stay on track.

"We can't allow this chaotic, shambolic political engagement to destabilise that."

- Dr Kenneth Creamer, Economist – University of the Witwatersrand

Scroll up to the audio player to listen to the interview.