Win with COVER & Emperor Asset Management




Financial Planning

South Africa: Moving on up

By Jeffrey Schultz and Burak Baskurt

Below are the key take-outs of the research notes from Jeff Schultz, Senior Economist at BNP Paribas South Africa and his Markets 360 Strategy and Economics team. 

KEY TAKE-OUTS:

  • South Africa’s Q1 GDP report highlights the economy is not only benefitting from strong commodity prices, but also some pent up consumer demand, we think.
  • We have revised up our GDP growth forecasts by a further 0.5pp to 4.7% in 2021 and 0.2pp to 2.1% in 2022, on a slightly improved consumption outlook and slower depletion of inventories.
  • Record terms of trade continue to benefit the balance of payments position. Therefore, we have revised up our 2021 current account surplus by 0.7pp to 2.3% of GDP.
  • A slightly faster closing of the output gap and broader GDP inflation gains have prompted us to further tweak up our CPI forecasts by 0.2pp for 2021 and 2022 and supports our call for a rate hike by November this year. We now see an end-2022 policy rate of 4.50%.

Download the full research notes HERE







Related posts
Financial Planning

Global minimum corporate tax rate has benefits for SA

Financial Planning

Rewards programmes open the door to cashbacks, but you have to walk through it

Financial Planning

Help is on the way for growing small businesses

Financial Planning

Beijing tries to ease spooked markets but volatility will define rest of 2021