Geopolitical competition, populist nationalism, economic inequality, technological innovation, and a planetary ecological emergency are testing the rules-based international order and complicating collective responses to shared threats. South African companies which provide services related to the Space industry, also increasing, and with the correct government legislation and support, this sector is expected to grow in South Africa. Following the national elections on May 29, 2024, the African National Congress, in power since 1994, received only 40.2% of votes.1 Thus, unable to secure a parliamentary majority, it formed a coalition government with the centrist and pro-market Democratic Alliance—its main opposition—as well as other small parties. The recent flat performance of private fixed investment is also a matter of concern and raises a red flag, he says, as future growth and employment greatly depend on this. On the basis of these trends and other relevant data mentioned earlier, SA could still just avoid a ‘technical recession’ (two successive quarters of negative economic growth) this year and can expect GDP growth of about 1% in 2024. The wide range of plausible outcomes to the SA elections presently being offered by political pundits is strong testament to the high level of uncertainty that exists.
Deloitte Insights Podcasts
Steering the economy and business in 2024 will therefore inevitably be about navigating poorly charted waters and avoiding rocks of uncertain location. Another welcome development in recent months was not just South Africa’s successful hosting of both the Brics and Agoa (African Growth and Opportunity Act) summits in Johannesburg, but also the extent to which these combined foreign trade events generated positive economic collaboration and business opportunities. Ballim said the bank anticipated 2025 would be “ more promising than the stabilisation period of 2024”, during which there had been a “striking improvement” in the political climate since the 29 May elections which saw the formation of the government of national unity.
Trade unions
High geopolitical tensions, particularly in the Middle East, could disrupt energy and financial markets, causing inflation to spike and growth to falter. Elevated debt service burdens could rise further as low-yielding debt is rolled over, exposing financial vulnerabilities. Inflation might prove more persistent than anticipated but could also fade faster if strong labour force growth continues. The key policy priorities are to ensure a durable reduction in inflation, establish a fiscal path that will address rising pressures, and undertake reforms to raise sustainable and inclusive growth in the medium term. While government looks to maintain fiscal prudence and macroeconomic stability, two key focus areas stand out in its plan to spur on economic growth.
Informal sector
On the fiscal front the danger to be avoided is that the combination of weak growth, unfunded spending pressures or the emergence of contingent liabilities could increase borrowing costs, and crowd out both private and public investment. The fiscal balance needs to be restored in the budge twithout having to resort to unsustainable borrowing or damaging tax increases. South Africa’s economic outlook in 2024 will be shaped by global economic trends, geopolitical developments, domestic infrastructural challenges, effective implementation of reform commitments by government, and the pending elections in this country. This edition of PwC’s South African Economic Outlook looks at the prospects https://www.tradingview.com/symbols/BTCUSD/ for key developed economies and emerging markets in 2025. While global economic growth is forecast by PwC’s Global Economy Watch Projections October 2024 to decline from 2.8% in 2024 to 2.6% in 2025, the fate of the world’s largest and most influential economies—and their impact on South Africa—varies.
Service industry
Uncertainty looms over the future of maritime trade as recent attacks on merchant vessels in the Red Sea and a drought in the Panama Canal force nations to consider alternate routes. He says the fiscal balance must be restored in the Budget without having to resort to unsustainable borrowing or damaging tax increases. She was so “principled” that every time there was a vote to increase Parliamentary salaries, she heroically voted against it. Only to gleefully cash the increase every month in her account after she had “lost” the vote. Not sure what will happen on JSE but there is quite a strong history of what happens in which year of US presidential elections. Yet until SA changes on a collective level; morals, principle, ethics, beliefs, etc, no amount of education will uplift us as a whole.
South Africa Economic Outlook 2024
Such a commission would bring together leading experts to propose amendments to credit rating methodologies, prudential regulations, and data need. It could have enough independence from the political process to withstand geopolitical volatility but could still build enough of a consensus on the technical details to create momentum for the agenda. This agenda could then be taken forward through a minilateral approach, including via informal coalitions such as the Paris Pact for People and Planet and the Bridgetown Initiative. It could then advance in a range of different national and multilateral regulatory forums, including via European Union legislation, the Bank for International Settlements, the Basel III framework, and at the Organisation for Economic Cooperation and Development. Emissary harnesses Carnegie’s global scholarship to deliver incisive, nuanced analysis on the most pressing international affairs challenges.
- By seizing this opportunity, G20 nations could address one of the major challenges of our time, without the need for major fiscal expansion from advanced economies.
- The Trade and Development Agency also has been actively involved in funding feasibility studies and identifying investment opportunities in South Africa for U.S. businesses.
- However, the domestic growth outlook may turn around and improve if loadshedding is reduced and rail and port infrastructure constraints are resolved, given the results of initial reforms in these sectors, and if cost-of-living pressures are reduced due to moderating inflation and potential rate cuts toward the year’s latter half.
- With interest rates staying ‘higher for longer’ in many economies, it will for now still be painful for companies and consumers alike in several parts of the global economy.
- PwC US’s Pulse Survey October 2024 found that half of the US executives polled expect to make more foreign investments under the new administration led by President-elect Donald Trump.
- That said, addressing energy and infrastructure challenges, together with easing inflation and a commensurate lower interest rate environment post the incoming administration—hopefully one that implements reforms and works toward fixing what is broken—will help unlock confidence and South Africa’s economic potential.
According to data released by Statistics South Africa (Stats SA), the GDP increased by 0.4% in the second quarter of 2024, following a 0.0% growth in the https://africa-gold-capital-investment.org/ first quarter. Given the fragmented nature of the challenge, the international policymaking community needs a forum where all of the key technical and political actors can come together to analyze the challenge and propose recommendations. These recommendations will then have an institutional home and momentum behind them that results in implementation over a five- to ten-year period that can weather electoral cycles and changes of leadership. Subsequently, African and other developing economies were whipsawed by inflationary pressures and responses to them.
Indeed, elections all over the world in 2024 will put the spotlight on the global state of democracy, including in South Africa. There will be more than 40 elections involving over four billion people, for the first time covering almost half of the world’s population. Western economies as a whole might do better in 2024 than expected at present, but are not out of the woods yet. This issue includes an assessment of the global economic situation, and a chapter summarising developments and providing projections for each individual country. KPMG is the brand under which the member firms of https://www.forbes.com/investing/ KPMG International Limited (KPMG International) operate and provide professional services. “KPMG in Southern Africa” is used to refer to the individual member firms within the KPMG organization in Mozambique, Zambia, Namibia, Botswana, Zimbabwe, Mauritius, and South Africa.
The 24 hours of rate cuts that end year of global central-bank easing
Increasing purchasing power, real wages and employment will support a gradual increase in consumption growth. The positive momentum is expected to continue into 2025 and 2026 with GDP growth forecast to improve over this period to levels around the average of 1.7% experienced over the ten years leading up to the Covid-19 pandemic. “However, this is still below what is required to make a meaningful impact on economic inclusion to absorb a significant proportion of the unemployed into the labour market,” he elaborates. Access more insights for the consumer spending, housing, business investment, globalization & international trade, fiscal & monetary policy, sustainability, equity, & climate, labor markets and prices & inflation sectors.