Macro Forum: The Street View
SOUTH AFRICA MACRO INSIGHTS
In South Africa, rolling blackouts reached an unprecedented level in December. More than a quarter of the country’s generating capacity broke down due to ongoing restructuring of the embattled state energy company. Large platinum and gold miners and multiple other sectors of the economy were forced to shut down, which is expected to significantly reduce growth in 2020. Due to the related pressure on fiscal balances, a potential downgrade of Moody’s sovereign credit rating to junk continues to present further downside risk. The economy is expected to see some improvement in the second half of 2020 however, driven by increasingly favourable monetary conditions, supporting an overdue turnaround in private consumption and fixed investment.
|Q2 2019||Q3 2019||Q4 2019||Q1 2020||Q2 2020|
* Year on Year
Real GDP Growth
South Africa FX vs FV
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