Eurozone crisis wipes $15bn off SA business revenue
According to BDLive, Grant Thornton says in its latest International Business Report (IBR) released on Tuesday, 18 December 2012, that South African companies estimate they have so far lost $15bn in revenue as a result of the eurozone crisis, which has wiped $2-trillion off revenue globally. The crisis has stunted manufacturing exports, as the European Union (EU) is South Africa's major export partner.
Other factors include a slowing demand from other markets such as China amid global economic uncertainty. South Africa's economic growth has also stalled as a result of the combination of the recession in Europe, and low domestic production, particularly in the mining sector which has suffered a spate of violent strikes.
Economists estimate SA economy will grow by just 2.5% in 2012, rising to 3% in 2013. In its report, Grant Thornton said 40% of businesses globally believed the eurozone crisis had had a negative impact on their business, BDLive reports.
Read the full article on www.bdlive.co.za.
