Tag: Gross Fixed Capital Formation (GFCF)
Why Ramaphosa should study Indonesia’s success model
Infrastructure challenges in South Africa are mounting in what is turning out to be a perfect storm. Power cuts, water shortages and potholes are all too common. The South African Institution of Civil Engineering (SAICE) highlighted these challenges in its 2022 state of infrastructure report that revealed that South Africa is at risk of becoming a “failed state”.
GDP numbers ‘better-than-expected’, but a depression may be looming
The market expected the economy to shrink by 3.8% over the first quarter so the -2.0% print for Q1 2020 GDP (quarter-on-quarter, seasonally adjusted and annualised) might be slightly better than anticipated, but it almost means nothing. This performance takes us only up to the end of March so it includes less than five working days of the lockdown.
2020 investor outlook – markets upbeat, but storm clouds gathering
Despite various geopolitical and economic challenges at the beginning of 2019, markets managed to deliver very strong returns for the year. And investors will be relieved to see that equity markets look set to start 2020 on a slightly better footing, as many of these uncertainties have been addressed to some extent over 2019.
Still hope for a New Dawn?
With GDP up 3.1% in the second quarter of 2019 (seasonally adjusted, annualised) and 0.9% for the year to June 2019, the markets have responded positively. The rand appreciated by some 10 cents on publication of the data and bonds yields declined by about 10 basis points.
