South Africa Economic Outlook
August 25, 2020GDP is expected to have shrunk markedly in Q2 as the country felt the full blow from Covid-19. Both manufacturing output and merchandise exports plunged by nearly a third amid muted global demand and disrupted supply chains. Moreover, retail sales contracted by over a fifth, spelling trouble for household spending. More encouragingly, turning to Q3, business sentiment improved somewhat in July, while the PMI pulled further away from May’s record low in the same month. Moreover, on 17 August, the government eased some lockdown measures, as the virus appeared to have reached its peak. The authorities lifted the ban on tobacco and alcohol sales and allowed domestic travel and businesses to reopen in a bid to boost economic activity. In addition, the IMF approved USD 4.3 billion in financial support in late July, boding well for momentum going forward.
South Africa Economic GrowthThe economy is expected to contract sharply this year due to Covid-19. Weak global demand will cripple the external sector, while domestic lockdown measures will constrain household and capital spending. Moreover, weak fiscal accounts and elevated government debt levels, which threaten the country’s credit rating, cloud the outlook further. FocusEconomics panelists see the economy shrinking 8.0% in 2020, which is down 0.3 percentage points from last month’s forecast, and expanding 3.4% in 2021.
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
September 11, 2020
Manufacturing output slid 10.6% year-on-year in July, which was above the 15.8% decline logged in June.
September 8, 2020
The economy plunged deeper into recession in the second quarter, with GDP nosediving 51.0% at a seasonally-adjusted annualized rate (SAAR).
September 3, 2020
The South Africa IHS Markit Purchasing Managers’ Index (PMI) increased to 45.3 in August from 44.9 in July, logging the best reading in six months.
August 26, 2020
Consumer prices rose 1.31% from the previous month in July, picking up from the 0.52% increase seen in June.
August 11, 2020
Manufacturing output dropped 16.3% compared to the same month a year earlier in June, which was above May's 32.4% decrease.