A combination of unfavourable factors arising both locally and internationally are placing a strain on South Africa’s already fragile economy. This has led to compromised confidence in the country for both consumers and business. Overall, we expect lacklustre economic performance as factors such as low demand, the electricity crisis as well as low commodity prices continue to negatively impact on the economy. For instance, the country has been facing a crippling energy crisis that has negatively impacted on the economy, both businesses and consumers.
High unemployment rates continue to plaque the country amidst socio-economic challenges such as high poverty rates and high income inequality.
Headline inflation has been picking up after months of relatively low inflation, and this trend is expected to continue as the rand continues to depreciate.
The “twin deficits” remain issues in the economy making it even more fragile to outside shocks.
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