Be grateful you have a job, warns economist

Cape Town – Don’t be fooled into thinking the global market turmoil experienced this week won’t hurt you personally, warned an economist on Wednesday.

“This is not something happening in a far-off country somewhere or in the virtual world of the financial markets,” said Dawie Roodt, who is the director and chief economist of the Efficient Group. “This is something that is going to hit you where it really hurts and that’s in your pocket.”

Speaking to News24Live via Skype, Roodt warned that South Africans will experience a rise in their cost of living. He said the cost of labour will go up, your mortgage will increase and inflation will rise because of the weaker currency.

On top of the global financial crisis, South Africa has recorded a 1.3% contraction in GDP in the second quarter.

“That is really disappointing,” he said.

“If you’ve got a job, be grateful, because a lot of people are going to probably lose their jobs,” he said. “Wage increases are not going to keep pace with inflation and food prices are going to go up.”

WATCH: It's unavoidable: global economic downturn will impact our cost of living in SA - Dawie Roodt