South Africa Economic Outlook
October 18, 2016Subdued commodity prices, weak global demand and a lack of structural reforms are stopping South Africa’s economic growth from reaching its potential. However, recent data point to another expansion of economic activity in the third quarter following the rebound in the second quarter. Growth in manufacturing production recovered in August and the PMI index jumped into expansionary territory in September, signaling improving business conditions in the manufacturing sector. That said, the exchange rate has been highly volatile lately following the political turmoil in the country. In the wake of the news that Finance Minister Pravin Gordhan had been summoned to appear in court on fraud charges, the rand plummeted nearly 5.0% against the U.S. dollar on 11 October and yields on the government’s 10-year bonds were up 25 basis points. The latest developments cast doubts on Gordhan’s future in politics and jeopardize the government’s popularity ahead of the budget statement on 26 October.
South Africa Economy Data
5 years of South Africa economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
South Africa Facts
|Bond Yield||8.80||-0.34 %||Oct 24|
|Exchange Rate||13.90||-0.68 %||Oct 24|
|Stock Market||0.1||0.10 %||Oct 24|
South Africa Economic Growth
October 18, 2016Despite Q2’s economic rebound, severe droughts across the country, political uncertainty and low commodity prices will limit growth in 2016. The FocusEconomics panel expects the economy to expand a meagre 0.3% this year, which is unchanged from last month’s estimate. For 2017, the panel projects that the economy will rebound and grow 1.2%, mostly due to a base effect.
South Africa Economic News
October 19, 2016
In September, consumer prices increased 0.16% from the previous month, which contrasted August’s 0.08% decrease.
October 12, 2016
In August, manufacturing production increased 2.2% from the same month last year, which contrasted the 0.3% decrease observed in the previous month.
September 22, 2016
On 22 September, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) decided to maintain the repurchase rate unchanged at 7.00%.
September 21, 2016
In August, consumer prices dropped 0.08% over the previous month, which contrasted July’s 0.82% increase and marked the first month-on-month decrease in a year.
September 8, 2016
In July, manufacturing production increased just 0.4% over the same month last year, which was considerably below the revised 4.7% rise seen in the previous month (previously reported: +4.5% year-on-year) and marked the slowest pace of growth in over a year.