South Africa Economic Outlook
June 21, 2022The economy returned to pre-pandemic levels as economic growth accelerated in the first quarter. The print was driven by increases in household consumption and exports of goods and services, although the pace of expansion eased for both. Activity seemingly began to worsen in the second quarter. Business conditions improved at a softer pace in April and May compared to the prior quarter, with activity disrupted by the devastating floods in the KwaZulu-Natal region. Business sentiment tanked further in the same two months. Furthermore, manufacturing production contracted at a six-month steep pace in April. Meanwhile, elevated inflation will have dented household spending. More positively, the war in Ukraine is buoying exports of coal to Europe, boding well for the external sector. Lastly, in mid-June the World Bank approved a USD 474 million loan to fund Covid-19 vaccine purchases.
South Africa Economic GrowthThe pace of economic growth is forecast to moderate this year. Adverse weather and power cuts are dragging markedly on activity, while the very high unemployment rate and rising inflation are denting household spending. The controversial employment quotas may exacerbate social tensions. Covid-19 remains a risk as well, due to a low vaccination rate. FocusEconomics panelists see the economy expanding 2.0% in 2022, which is up 0.1 percentage points from last month’s projection, and 1.7% in 2023.
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 21, 2022
Inflation came in at 7.6% in August, which was down from July’s 7.8%.
September 8, 2022
Manufacturing output slid 0.2% month-on-month in seasonally-adjusted terms in July (June: -2.0% mom).
September 6, 2022
Underlying momentum weakened in the second quarter of 2022, as GDP dropped 0.7% on a seasonally adjusted quarter-on-quarter (s.a.
September 5, 2022
The S&P Global Purchasing Managers’ Index (PMI) fell to 51.7 in August from July's 52.7.
August 24, 2022
Inflation came in at 7.8% in July, up from June’s 7.4%.