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The damage
caused by the capture of the state is "worse than what we originally thought", Reserve
David Fowkes, Senior Economist of the Bank for Regional Policy, said that he had
resulted in a "major investment and no growth".
Speak in
Cape Town Thursday night at the Reserve Bank City Stage
monetary policy forum, Fowkes said it was a "puzzle" that the
growth in South Africa has not been superior.
According to the latest figures from Statistics South Africa,
economy declined by -3.2% qoq (seasonally adjusted and
annualized) in the first quarter of 2019 – the largest decrease since 2008
global financial crisis and the second largest decline in more than two decades.
"Growth should be above 4%"
"A
the riddle for us is about the post-crisis period investments have not been
particularly weak. In fact, public investment has increased, "said Fowkes.
"With
this pool of labor and infrastructure investments in a normally functioning environment.
economy, growth is expected to exceed 4% and there has certainly been no growth ",
Said Fowkes.
"This
is proof of what the capture of the state looks like, "he said.
you have a major investment and no growth.
"We
suspect that the damage caused by state capture is worse than
originally suspected, "he added.
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