Factors affecting the pace of policy normalisation in South Africa

Inflationary pressures continue to build, with input costs rising at a rapid pace. The economic landscape is also constantly shifting: prolonged Covid lockdowns are affecting Chinese industrial production and exports, which has a significant impact on the international movement of goods.

What you will learn:

• A slowdown in Chinese economic activity will hold negative implications for the South African economy.
• Moreover, devastating floods in parts of KwaZulu-Natal (KZN) and the latest bouts of loadshedding are going to hurt domestic real GDP growth in Q2.
• As economic activity continues to weaken, it will become harder to justify tighter policy.