A strong mid-year performance helped lift South Africa’s economy out of recession and back into positive territory in 2017. However, factors such as high unemployment and an expanding deficit could rein in growth in 2018.
Malusi Gigaba, South Africa’s minister of finance, delivered the Medium-Term Budget Policy Statement (MTBPS) to Parliament on October 25, outlining a mix of partial privatisations and infrastructure spending aimed at spurring economic growth while still pursuing fiscal consolidation.
While South Africa’s economy has emerged from recession and is showing signs of sustained growth, that has yet to feed into the property market, meaning residential sales and new construction will likely remain subdued for the rest of this year.
South Africa has recovered from its recession, though investors remain cautious given policy uncertainties and waning business sentiment.
Improved sales in key segments of South Africa’s automotive industry point to a modest rebound in domestic demand, though much of the growth in the sector stemmed from rising exports.
South Africa’s food and beverages industry is one of a handful of key agri-processing segments set to benefit from a new state-led investment incentive scheme.
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