Dawie Roodt, chief economist at Efficient Group, said he feared South Africa was heading towards a full-blown recession. “Given the devastation wrought by load shedding and the government’s rapidly growing debt burden, I think things are going to get a lot worse before they get better,” he said.
The high fiscal deficit was his biggest concern, making it difficult for the government to borrow money to keep the economy going, Roodt said.
Miyelani Mkhabela, economist and director at Antswisa Transaction Advisory, said he doubted South Africa would get itself out of trouble next year if there was no clear vision from President Cyril Ramaphosa.
He expected the fuel price would go down in the first few months of the year, and then up in subsequent months, following international trends. He said he had not seen any reason to make the Organisation of Petroleum Exporting Countries (Opec) raise oil prices so far.