South Africa Economic Outlook
August 24, 2021Available data for Q2 paints a mixed picture: Manufacturing production contracted in monthly terms in the quarter, and authorities tightened restrictions following a surge in infections from end-May. However, business sentiment improved in Q2 compared to Q1, and the private sector PMI averaged higher overall. Turning to Q3, some restrictions were eased on 26 July amid an accelerating vaccination drive, which should continue to improve as locally manufactured vaccines and the arrival of around 5.7 million jabs from the U.S. boost supplies. However, an explosion at a power unit in early August, coupled with already recurrent energy shortages, will be putting pressure on activity. Meanwhile, following the riots that broke out in mid-July, President Ramaphosa reshuffled his cabinet, replacing Finance Minister Tito Mboweni with Enoch Godongwana. This weakened the rand, as investors trusted Mboweni to get spending and debt under control.
South Africa Economic GrowthThe economy is set to recover from 2020’s downturn this year, bolstered by a revival in foreign demand as the effects of the pandemic fade. However, social unrest, an increasing unemployment rate and frail public finances all pose downside risks, while ongoing power shortages will add further pressure. FocusEconomics panelists see the economy expanding 4.2% in 2021, which is down 0.1 percentage points from last month’s forecast, and 2.5% in 2022.
South Africa Economy Data
5 years of South Africa economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
South Africa Facts
|Bond Yield||8.26||0.29 %||Dec 31|
|Exchange Rate||13.98||-0.21 %||Dec 31|
|Stock Market||0.1||-0.44 %||Jan 06|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
South Africa Economic News
August 18, 2021
Consumer prices increased 1.08% in July over the previous month, after the 0.20% increase logged in June.
August 10, 2021
Manufacturing production grew 12.5% year-on-year in June (May: +36.3% yoy).
August 4, 2021
The IHS Markit Purchasing Managers’ Index (PMI) fell to 46.1 in July from June's 51.0, marking the worst reading since August 2020.
July 22, 2021
At its meeting on 22 July, the Monetary Policy Committee of the South African Reserve Bank (SARB) unanimously decided to leave the repurchase rate on hold at 3.50%, which was in line with market expectations. The decision to hold fire largely came on the back of uncertain growth prospects and a relatively contained inflation outlook.
July 21, 2021
Consumer prices increased 0.20% over the previous month in June, accelerating from May's 0.08% increase.