Policy uncertainty in SA at seven-year high

Investors are keeping an eye on developments in the US debt row and the China Evergrande crisis as well as the Federal Reserve's plans to tighten monetary policy. AFP/Daniel Roland

JOHANNESBURG - Policy uncertainty in South Africa has climbed to levels last seen over seven years ago.

That's according to the latest North West University Policy Uncertainty Index.

The index shows that policy uncertainty in the second quarter of this year increased to 60.9 from 59.7 in the previous period.

It highlights that a lot of the uncertainty has been driven by the Russian Invasion of Ukraine which has threatened global economic growth.

Global uncertainty has also put the spotlight on policy concerns in South Africa.

The report says that persistent blackouts, which have reached Stage 6, continue to weaken an already fragile economy.

Policy uncertainty affects growth, employment and investment.

The  ANC-led government has lagged in implementing critical structural reforms and policies.

Source
eNCA

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