The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

After increasing by one index point between April and March 2010, SACCI's Business Confidence Index (BCI) registered 84.2 in April 2010. The April 2010 BCI is 2.8 points higher than in April 2009 and represents only the second year-on-year increase in 30 months. The BCI has been on an upward trajectory since the start of 2010.

Between April and March 2010, nine BCI sub-indices, had a positive effect on the BCI (the same number as between March and February 2010). Four sub-indices had a negative impact on the BCI in April 2010 on a month-on-month basis. Domestically, there is growing support for the view that most economic indicators have advanced beyond their lower turning points. The key economic constraint remains low levels of real household consumption expenditure which restrains stronger business activity.

Although the 2010 readings of the BCI remain relatively subdued, the positive trend is expected to gain momentum mainly as a result of export led demand and improving global economic circumstances. However, the public debt problems of Greece, does present the risk of contagion if not addressed decisively. Public debt management concerns in the PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) have the potential to put the Euro Zone at risk and affect the global economy on a more intensive scale.
Apart from Greece, the other PIIGS countries are also under constant scrutiny for possible public financial default. Although Greece is regarded as an advanced economy, global market participants will also critically view the fiscal and public finance policies of emerging markets. Demand for financing for public sector programs in South Africa will be evaluated against the background of recent developments in Greece and the other PIIGS countries.
The Greece fault line has once again made the world aware of the fragility of the present recovery and policy makers must tread cautiously if the sustainability of the present recovery is to be assured.