South Africa Economic Outlook
February 20, 2018Jacob Zuma’s presidency came to an abrupt end when he resigned from his nearly decade-long position on 14 February. His resignation capped a series of events that began after the deputy president, Cyril Ramaphosa, became leader of the ANC, South Africa’s dominant political party, in December. Ramaphosa was sworn in as president on 15 February and inherits an economy that is in bad shape, despite some encouraging signs lately. In Q4, higher mining production propelled a modest recovery in manufacturing output in year-on-year terms. The unemployment rate declined from Q3’s multi-year high, but remained elevated, at 26.7%. Leading indicators such as the manufacturing PMI and the Sacci business confidence index improved in January, but remain at low levels, underscoring the many challenges besetting the private sector. On 21 February, the government will unveil its fiscal plan for this year in a budget speech. Moody’s is then expected to make a ratings decision based on the government’s 2018 fiscal strategy. A credit downgrade would put severe pressure on the rand and likely determine if South Africa’s incipient economic recovery observed since the second half of 2017 holds on this year.
South Africa Economic GrowthThe economy is expected to recover moderately in 2018 and 2019 on the back of higher prices for commodities. Nevertheless, growth will remain constrained if structural imbalances in the economy are not addressed. Met the why particular panelists expect the economy to grow 1.5% in 2018, which is unchanged from last month’s forecast, and 1.8% in 2019.
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||8.04||0.29 %||Feb 22|
|Exchange Rate||11.66||-0.21 %||Feb 22|
|Stock Market||0.1||-0.44 %||Feb 22|
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South Africa Economic News
February 21, 2018
Consumer prices rose 0.3% in January over the previous month, coming in below the 0.5% month-on-month increase in December.
February 19, 2018
Cyril Ramaphosa was sworn in as South Africa’s new president on 15 February after Jacob Zuma resigned from the post the previous day, following intense pressure from the African National Congress (ANC) party.
February 13, 2018
Activity in the private sector remained in contractionary territory for a sixth consecutive month in January, albeit ticking closer to the 50-point threshold that separates expansion from contraction.
February 9, 2018
According to a preliminary estimate released by the Statistical Institute on 8 February, year-on-year manufacturing production expanded 2.0% in December, coming in above the revised 1.5% increase in November (previously reported: +1.7% year-on-year).
January 24, 2018
Consumer prices rose 0.5% in December over the previous month, coming in above the 0.1% month-on-month rise in November.