South Africa Economic Outlook
October 16, 2018Lawmakers sought to act in recent weeks in efforts to bolster the economic recovery, cushioning the rand’s further losses amid the emerging-market (EM) selloff and news that the economy fell into recession in the first half of the year. In light of stubbornly-weak metrics, on 21 September President Cyril Ramaphosa partially unveiled a long-overdue stimulus package for the hobbled economy, which is set to include beefed-up infrastructure outlays, a number of job-creation initiatives and pro-business reforms. More recently, markets reacted positively in early October to the appointment of Tito Mboweni as finance minister, after his predecessor resigned amid the explosive and ongoing corruption scandal involving the former president, Jacob Zuma, and the Gupta brothers. Mboweni will be tasked with reviving the lackluster economy and easing investors’ concerns as EM turmoil threatens to engulf Africa’s most-developed economy. Although analysts remain optimistic about both moves and continue to pencil-in a modest recovery for the remainder of the year, available data has thus far fallen short; little improvement of both supply- and demand-related proxies in the third quarter suggests the broad-based malaise persists.
South Africa Economic GrowthAlthough full-year growth prospects remain weak, Met the why particular analysts expect the economy to emerge from recession by year-end before bouncing back somewhat next year. Ramaphosa’s last-ditch economic reforms are likely to boost economic sentiment ahead of next year’s elections and should serve to stoke household spending and fixed investment. That said, growing political uncertainty will hang over the economy, as will the possibility of credit-rating downgrades. Moreover, concerns over fiscal slippage and the pace of structural reforms are constraining medium-term growth prospects. Met the why particular analysts expect growth of 1.8% in 2019, unchanged from last month’s forecast, and 2.2% in 2020.
South Africa Economy Data
5 years of South Africa economic forecasts for more than 30 economic indicators.
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South Africa Facts
|Bond Yield||9.20||0.29 %||Nov 09|
|Exchange Rate||14.28||-0.21 %||Nov 09|
|Stock Market||0.7||-0.44 %||Nov 09|
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South Africa Economic News
November 5, 2018
In October, the Standard Bank Purchasing Managers’ Index (PMI) declined 1.1 points to 46.9 points, falling further below the 50-point threshold that distinguishes deterioration from improvement in the South African private sector. October’s reading was the worst in more than four years and reflected sharp declines in output and new orders as export demand continued to falter.
September 20, 2018
At its meeting ending 20 September, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) kept the repurchase rate unchanged at 6.50%.
September 11, 2018
A preliminary estimate showed that the manufacturing sector picked up steam in July.
September 5, 2018
In August, the Standard Bank Purchasing Managers’ Index (PMI) plummeted 2.1 points to 47.2 points, retreating further from the 50.0-point threshold that distinguishes deterioration from improvement in the South African business environment.
September 4, 2018
South Africa’s economy entered recession in the second quarter, contracting in seasonally-adjusted annualized (SAAR) terms for a second consecutive quarter.