
South Africa Economic Outlook
November 17, 2020
The economic scenario likely remained challenging in Q3, after the historic plunge in activity in Q2. While the pace of decline moderated from Q2 due to the gradual easing of restrictions, industrial output contracted relatively sharply in the quarter. Meanwhile, business sentiment remained entrenched in negative territory in the same period, likely holding back capital spending. Turning to Q4, however, the manufacturing PMI returned to growth for the first time in 18 months, hitting an over two-and-a-half-year high amid improved demand dynamics. Moreover, despite a stubbornly high number of Covid-19 cases, authorities announced the reopening of borders to all international travelers on 11 November, in a bid to revive the ailing tourism industry. In other news, on 28 October, the government tabled its medium-term budget statement, reaffirming its commitment to fiscal consolidation and debt stabilization.South Africa Economic Growth
After this year’s projected contraction at the hands of Covid-19, the economy is seen rebounding in 2021 as domestic and foreign demand revive. That said, high unemployment and persistent electricity shortages are likely to weigh on growth, while frail fiscal metrics and a ballooning public debt stock pose additional risks. FocusEconomics panelists see the economy expanding 3.6% in 2021, which is down 0.1 percentage points from last month’s forecast, and 2.5% in 2022.South Africa Economy Data
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South Africa Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 8.26 | 0.29 % | Dec 31 |
Exchange Rate | 13.98 | -0.21 % | Dec 31 |
Stock Market | 0.1 | -0.44 % | Jan 06 |
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South Africa Economic News
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South Africa: Inflation ticks up in January
February 17, 2021
Consumer prices rose 0.34% in January over the previous month, picking up from the 0.17% increase recorded in December and marking the sharpest increase in prices since July 2020.
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South Africa: Manufacturing activity grows at fastest pace in over one-year-and-a-half in December
February 11, 2021
Manufacturing output increased 1.8% compared to the same month a year earlier in December, which contrasted November's 4.1% decrease and marked the strongest expansion since April 2019.
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South Africa: PMI rises slightly in January
February 3, 2021
The South Africa IHS Markit Purchasing Managers’ Index (PMI) rose to 50.8 in January, from December’s 50.2, marking the best reading in three months.
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South Africa: SARB stays put in first meeting of the year
January 21, 2021
At its first meeting of the year on 21 January, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) left the repurchase rate unchanged at its record low of 3.50%.
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South Africa: Inflation drops to three-month low in December
January 20, 2021
Consumer prices increased 0.17% in December over the previous month, after November's flat result.