However, when there is a reasonable measure of strength in the self-sustained recovery, the inherent force can be expected to withstand the negative impact and put the economy back on the recovery path, despite being temporarily decelerated. In this case, the negative impact is contained and the private sector’s economic outlook and investment attitude remain firm.
Generally, conditions in the global financial system are still influenced by above-normal levels of uncertainty, highlighting the fact that the process of repairing impaired financial systems is far from complete. In South Africa, despite positive signs of economic recovery, employment continued to decline, placing a significant damper on the domestic financial system.