South Africa Economic Outlook
October 15, 2019
Economic activity in the third quarter appeared bleak, following the second quarter’s notable rebound. In July–August, manufacturing and mining output continued to shrink, and electricity supply swung to decline, while retail sales growth slid in July and the PMI fell in September. Meanwhile, the country’s fiscal challenges continue to mount, with Fitch Ratings downgrading Eskom’s stand-alone credit rating further into junk territory on 30 September. The cut affirmed the state power provider’s waning ability to ease its hefty debt load, intensifying the pressure on public finances. In the latest bid to alleviate Eskom’s cost burden somewhat, ministers called on coal producers to slash prices. Furthermore, the National Treasury’s bailout conditions—presented to Parliament on 9 October and which will require monthly updates to monitor debt repayments and minimize default risk—have eased Eskom’s risk premium.South Africa Economic Growth
The economy is seen gaining traction next year, thanks to stronger domestic demand aided by easing constraints on power supply. Improving investor sentiment and favorable monetary conditions should help bring about a turnaround in private consumption and fixed investment. That said, fiscal challenges could worsen as Eskom may need yet more funds next year. FocusEconomics analysts see growth at 1.4% in 2020, which is down 0.1 percentage points from last month’s forecast, and 1.7% in 2021.South Africa Economy Data
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South Africa Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 8.10 | 0.29 % | Sep 04 |
| Exchange Rate | 14.81 | -0.21 % | Sep 04 |
| Stock Market | 0.1 | -0.44 % | Sep 04 |
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South Africa Economic News
South Africa: Manufacturing production contracts at sharper rate in August
October 10, 2019
Conditions in the manufacturing sector deteriorated in August.
South Africa: Business conditions deteriorate for fifth consecutive month in September
October 3, 2019
Business conditions in South Africa’s private sector deteriorated for the fifth consecutive month, with the IHS Markit Purchasing Managers’ Index (PMI) sliding to 49.2 in September from 49.7 in August.
South Africa: SARB keeps interest rates unchanged despite concerns about economic growth
September 19, 2019
At its meeting ending 19 September, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) unanimously decided to keep the repurchase rate unchanged at 6.50%, after having cut rates by 25 basis points at its previous session.
South Africa: Inflation picks up in August amid weaker rand
September 18, 2019
Consumer prices rose 0.3% over the previous month in August, a slightly smaller upturn compared to the 0.4% month-on-month increase in July.
South Africa: Contraction of manufacturing production eases in July
September 10, 2019
The contraction of the manufacturing sector eased in July.
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