Tag Archiveseconomics

IMF, Treasury, economy, GDP, unemployment, International Monetary Fund

IMF publishes outcome of Article IV consultation with SA

The International Monetary Fund (IMF) has today published the outcome of its Article IV consultation with South Africa that took place between 28 May and 11 June 2018. (more…)

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Ian Matthews, Head of Business Development at Bravura

Protection of Investment Act may deter foreign investment even further

President Cyril Ramaphosa activated the controversial Protection of Investment Act, by publication of a notice in the Government Gazette, on Friday 13 July. The Act was signed into law by former President Jacob Zuma in 2015, and foreign investors were waiting on tenterhooks as to the commencement date of the law. The law was controversial […]

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Trade conditions worsen: SACCI

According to SACCI’s June 2018 trade conditions survey, trade conditions deteriorated further. The Trade Activity Index (TAI) that measures present trade conditions, moved further into negative territory and was 37, compared to 40 in May 2018. The survey also shows trade expectations for the next six months, as reflected by the Trade Expectations Index (TEI), which […]

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Policy Uncertainty Index moves into negative territory

The North West University (NWU)’s Business School’s Policy Uncertainty Index (PUI) for  2Q 2018 rose to 51.0 (baseline 50) compared to 49.6 in 1Q 2018 “The latest rise in the PUI is the result of a blend of economic and political factors over the past three months which have generated a renewed degree of policy […]

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SARB Quarterly Bulletin: Personal finances deteriorate in Q1

The SA Reserve Bank released its Quarterly Bulletin today, showing that personal finances deteriorated in Q1 2018. According to Nedbank’s Dennis Dykes and Johannes Khosa: There was almost no growth in real disposable income over the quarter, while household debt increased. The ratio of household debt to disposable income rose to 71,7% from 71,2%, and the […]

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‘There are three types of interest rates or borrowing costs in an economy’

By Dave Mohr (Chief Investment Strategist) & Izak Odendaal (Investment Strategist), Old Mutual Multi-Managers. They say three’s a crowd, but the worry for many investors is that more than three is a stampede. The yield on the benchmark 10-year US government (Treasury) bond broke decisively above 3% for the first time since 2011. A nice round […]

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Stronger dollar a headache for the rand

By Mehul Daya and Walter de Wet of Nedbank. The stronger US dollar has rung alarm bells in financial markets – the US Dollar has gained 5% since mid-February 2018 as the US Federal Reserve reverses quantitative easing and signals a series of staccato rate rises. The dramatic comeback in the US dollar has led to […]

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Uncertainty about investor protection affects Foreign Direct Investment into SA

South Africa’s government is juggling a lot of balls as it tries to find solutions to speed up land reform, while at the same time searching for a considered approach to assure local and international investors that their investment rights are protected.  A Joint Constitutional Review Committee has been mandated to review the merits of […]

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