Western Cape Finance, Tourism and Economic Development MEC Alan Winde Says Although Economic Growth Was Still Not Tangible to the Man on the Street, Current Investments Indicated That the Economy Was Starting to Grow
Western Cape Finance, Tourism and Economic Development MEC Alan Winde says although economic growth was still not tangible to the man on the street, current investments indicated that the economy was starting to grow.
Using an example of the increased number of companies establishing their back-offices and call centres in Cape Town, Winde said this was indicative of a growing economy.
"It's quite a stable sector, that's where we've seen investments. Many BPO's (business processing organisations) are now based in the Western Cape.
"From the investments we've been seeing in this sector, it shows that the economy is starting to grow. The man on the street might not be seeing it, but it's happening," said Winde.
Winde was speaking after a twitter "townhall" in which he took questions from the public after announcing the findings of the Bureau for Economic Research's second quarter study for the province's economy on the social network.
South Africa's business confidence index declined from 55 points to 48 points from the first to the second quarters.
Business confidence in the Western Cape also declined but at a more pronounced pace shedding 15 points to record a level of 41 points.
The report found that the regional economy of the Western Cape grew at an average of 4,3 percent per annum for the period 2005 to 2009. This average was pulled down by the 1,4 percent year-on-year contraction in economic activity registered in 2009. …