I don’t know how you feel, but with all the news on the structural reforms we need in this country, I am often not sure what structural reforms our economy needs. Tito seems to have a good grasp of it all and maybe he is the only one in the cabinet who does.
Luckily, as he does, JP Landman of Nedbank, has cut through the clutter and found a way to explain it all that will hopefully make sense. He uses an important economic statistic of productivity, which is the amount of gross domestic product per hour worked, to explain it to us.
Productivity has flattened worldwide over the past five years and hopefully a silver lining from the lock down and the virus is that the technological changes that are needed in increase worldwide productivity will happen within months and not years.
He also points out that South Africa can make structural changes over and above new technology to enhance our economic growth, to enable us to catch up with the rest of the world. As always in South Africa, implementation is key, but JP points out that major items are already work in progress.
Interesting to see how we have progressed over past 49 years.
Natalie has attached JP’s Note for your convenience.
Stay safe.