Global markets plunged yesterday as investors sold shares in stock markets around the world.
South Africa was badly affected as the Johannesburg Stock Exchange fell by over 3 % and the Rand fell to a two year low of R 8.24 to the US Dollar.
There is concern worldwide as the United States as well as the Chinese economy shrinks. These are the two biggest markets in the world and with Americans spending less, China will manufacture less, causing a ripple effect on the global economy.
The recession is being felt in Jeffreys Bay and one just has to take a drive down da Gama Road to see the number of empty shops as business after business closes down.
Big retail shops in Fountains Mall are also shutting their doors as South Africans tighten their belts in an effort to survive the economic crises.
A long established retail outlet owner in Jeffreys Bay said that he has never seen things so bad in Jeffreys Bay. “Some days there is not even a sale in our shop. We haven’t experienced that since the 1980’s when Jeffreys Bay was a small surf and seasonal holiday village”.
Property prices in Jeffreys Bay are under pressure and the boom time is yet again something of the past. Sellers are being forced to price their properties correctly if they are serious about offloading their properties.
The South African Reserve Bank has left its lending rate unchanged at 5.5 %, which is a 30 year low in an effort to stave off further inflationary concerns locally.
“It is as close to what you would be able to compare with the Great Depression,” Marcus said. “The challenges going forward are enormous. And there is no end in sight.”