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Port Elizabeth - South Africa is probably only halfway through the economic downturn that is expected to last 30 months, economist Mike Schüssler said on Wednesday.
The country has seen 14 months of the downturn, which he reckons will be the worst in "our lifetime", he told a meeting of the Port Elizabeth Regional Chamber of Commerce and Industry (PERCCI) and the Eastern Cape Socio-Economic Consultative Council (ECSECC) in Port Elizabeth.
The next five years will be worse than the previous five in several ways, but mainly because prospects for 2009 are so gloomy.
This is, however, part of a cycle and positive signs are good numbers from, for example, Shoprite Checkers and Clicks, which show that consumers are spending more on everyday items.
Globally prices of products like cheese and eggs are falling, but this has not yet been evident on South African shelves. The price of A-grade cheddar cheese in the US recently fell 40%, and consumers are now paying about R20/kg.
Schüssler stresses that South African consumers are under severe pressure and shop owners should reduce prices. He explains that during an event such as the 2010 Soccer World Cup prices of goods and services will rise, fuelling inflation.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.