South Africa Economic Outlook
November 17, 2020The 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 GrowthAfter 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
5 years of South Africa economic forecasts for more than 30 economic indicators.
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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|
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South Africa Economic News
July 22, 2021
At its meeting on 22 July, the Monetary Policy Committee of the South African Reserve Bank (SARB) unanimously decided to leave the repurchase rate on hold at 3.50%, which was in line with market expectations. The decision to hold fire largely came on the back of uncertain growth prospects and a relatively contained inflation outlook.
July 21, 2021
Consumer prices increased 0.20% over the previous month in June, accelerating from May's 0.08% increase.
July 12, 2021
Manufacturing production rose 35.3% year-on-year in May (April: +88.1% yoy), partly reflecting a low base effect.
July 5, 2021
The South Africa IHS Markit Purchasing Managers’ Index (PMI) came in at 51.0 in June, down from May's 53.2.
June 23, 2021
Consumer prices rose 0.08% over the previous month in May, coming in below April's 0.67% increase.