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Bloemfontein - In February the the Free State economy performed even better than in the previous two months.
For the first time in more than 36 months the Sake24 and BoE Private Clients' Free State Barometer, which measures economic activity, had a double-digit spurt – up 10.4%.
According to Economists.co.za’s Mike Schüssler, the compiler of the Free State barometer, growth could be seen across a broad front. It was driven by consumer spending, government’s greater contribution to the provincial economy and increased activity in the transport sector.
But he warns that the current national budget deficit could soon apply the brakes to increasing state expenditure.
In the Free State, he said, government’s contribution to the local economy has been growing 20.1% year-on-year, which is unsustainable in the long term.
Nancy de Sousa, president of the Bloemfontein Chamber of Commerce and Industry, which also undertakes outreach actions into the Free State’s rural areas, says although government spending seems high its benefits do not filter through to the poor rural areas of the province.
So many promises made in the past two years and development projects that could truly make a difference have not been realised, she said.
This is not because of the poor economic conditions, but because there is no strategy or leadership. There is no organised cooperation between local government and the private sector.
Free State mining depends heavily on the mines of the goldfields and, according to Schüssler, their higher production costs put a damper on the industry.
It is evident that the mining index has begun to fall in the past three months, and this is largely attributable to difficult operating conditions in the gold mining sector.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
For the first time in more than 36 months the Sake24 and BoE Private Clients' Free State Barometer, which measures economic activity, had a double-digit spurt – up 10.4%.
According to Economists.co.za’s Mike Schüssler, the compiler of the Free State barometer, growth could be seen across a broad front. It was driven by consumer spending, government’s greater contribution to the provincial economy and increased activity in the transport sector.
But he warns that the current national budget deficit could soon apply the brakes to increasing state expenditure.
In the Free State, he said, government’s contribution to the local economy has been growing 20.1% year-on-year, which is unsustainable in the long term.
Nancy de Sousa, president of the Bloemfontein Chamber of Commerce and Industry, which also undertakes outreach actions into the Free State’s rural areas, says although government spending seems high its benefits do not filter through to the poor rural areas of the province.
So many promises made in the past two years and development projects that could truly make a difference have not been realised, she said.
This is not because of the poor economic conditions, but because there is no strategy or leadership. There is no organised cooperation between local government and the private sector.
Free State mining depends heavily on the mines of the goldfields and, according to Schüssler, their higher production costs put a damper on the industry.
It is evident that the mining index has begun to fall in the past three months, and this is largely attributable to difficult operating conditions in the gold mining sector.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
