South Africa Economic Outlook
July 17, 2018A loss of momentum at the outset of the year left analysts speculating on whether the effects of “Ramaphoria”, the bounce in economic sentiment that followed the new president’s early-year appointment, had worn off. A weak first-quarter reading, held back by contracting investment and moderating consumer spending, highlighted the economic hurdles facing Cyril Ramaphosa, as the country heads in next year’s general election. Available data for the second quarter was, however, more balanced; the emerging-market selloff eased its battering of the rand in June, which should lessen the pinch to consumers following April’s VAT hike. Moreover, despite ticking downward since the beginning of the year, business confidence remained high as firms continued to believe in Ramaphosa’s commitment to structural reforms. Meanwhile, the manufacturing sector appeared to get back on track through May as automotive output inched up, blunting immediate fears over a technical recession in the first half of the year.
South Africa Economic GrowthGreater political stability and firm credit ratings bode well for the economy in 2018 as full-year economic prospects look set to largely ride out the weak first quarter. Real wage gains should support stronger household spending this year, while the government’s push to attract investment should bolster capital outlays. Nevertheless, fiscal slippage and a slow reform agenda are likely to constrain growth over the medium term. FocusEconomics analysts expect growth of 1.6% in 2018, down 0.3 percentage points from last month’s forecast, and 2.0% 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||9.02||0.29 %||Aug 15|
|Exchange Rate||14.65||-0.21 %||Aug 15|
|Stock Market||0.8||-0.44 %||Aug 09|
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South Africa Economic News
August 10, 2018
A preliminary estimate showed that the manufacturing sector lost steam in June.
August 3, 2018
In July, the Standard Bank Purchasing Managers’ Index (PMI) fell 1.6 points to 49.3 points, dipping below the 50.0-point threshold that distinguishes deterioration from improvement in the South African business environment for the first time in six months.
July 18, 2018
Consumer prices rose 0.4% from a month earlier in June, on the heels of May’s 0.2% rise.
July 13, 2018
A preliminary estimate showed that manufacturing output continued to rebound in May.
July 4, 2018
In June, the Standard Bank Purchasing Managers’ Index (PMI) climbed 0.9 points to 50.9 points, squeaking by the survey’s long-run average.