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11 Sep 2018, Gergana Bencheva, EMIS Editor

South Africa’s agribusiness confidence index slips to level from 2016

South Africa’s agribusiness confidence index declined below the neutral 50-point threshold, reaching 48 points for the third quarter of 2018, CEEMarketWatch reported citing a survey conducted by the Agricultural Business Chamber (Agbiz) and the Industrial Development Corporation (IDC). Thus, the index hit its lowest level since the second quarter of 2016, which proved to be a drought year.

The decline was supported by five out of ten subindices, namely turnover, employment, capital investment, the volume of exports and economic growth. Agbiz underlined that the deterioration this time was linked to policy uncertainty and weak economic growth and not to the usual reasons linked to poor weather conditions.

South Africa’s agriculture sector was the main reason for the country’s economic contraction in the first two quarters of 2018 although it accounts for only about 2.5% of its gross domestic product (GDP), CEEMarketWatch added.

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