Category: South Africa

South African economy at risk of downgrade to junk status?

South African economy at risk of downgrade to junk status?

As the country’s finance minister gives his mid-term budget, South Africa’s fiscal deficit may be larger than earlier forecast. Summary: A larger than anticipated fiscal deficit may be about to put South Africa’s credit rating on the verge of a downgrade to junk status A survey of Bloomberg economists estimates the deficit will only shrink to… Read more »

Brexit creates a “solid opportunity” for South African investors

Brexit creates a "solid opportunity" for South African investors South Africans can buy properties in key UK cities such as "Manchester at a 15% discount” to what they could five weeks ago. Summary: The UK’s vote for Brexit has created a “solid opportunity” for South African investors to diversify their portfolios with British real estate Following the referendum result the pound fell to its... Read more »

South African property market registers “noteworthy decline”

South African property market registers "noteworthy decline"

Poor economic performance and a weakening rand sees South Africa’s property sector fall in two international market reports. Summary: South Africa is one of two African countries to have registered “a noteworthy decline” in JLL’s latest Global Real Estate Transparency Index A weakening currency and an economy on the brink of recession also caused South… Read more »

Domestic concerns trump Brexit falls for South Africa investors

Domestic concerns trump Brexit falls for South Africa investors

The UK still represents a strong investment destination for South Africans more concerned over the economic woes their own country continues to suffer. Summary: The UK still holds of a position of investment strength over South Africa Investor concerns over the uncertainty caused by Brexit less significant than the ongoing concerns over the future economic… Read more »

South Africa heading into recession?

South Africa heading into recession?

The country’s economy slowed more than predicted in the first three months of the year, “painting a very bleak picture” for future growth prospects. Summary: South Africa is on course for its first recession in seven years This week Fitch followed Standard and Poor’s in sparing the country from ‘junk’ status, but the economy shrunk… Read more »

South Africa’s economic growth prediction lowered

South Africa's economic growth prediction lowered

Ratings agency Standard & Poor’s maintained its BBB- for the country’s economy and warns political instability could derail future growth. Summary: South Africa’s economic growth forecast was lowered by 1% by ratings agency Standard & Poor’s as it maintained its BBB- rating The country has been warned that comprehensive economic reforms must be implemented in… Read more »

South Africa’s rand crashes to a 2-month low

South Africa's rand crashes to a 2-month low

Reports of further political uncertainty caused the already struggling rand to fall to its lowest level against the dollar since mid-March. Summary: On Monday the rand crashed to its lowest level against the dollar The trough was triggered by reports that South Africa’s finance minister could be arrested Poor economic performance continues to put further… Read more »

South African rand falls with record unemployment levels

South African rand falls with record unemployment levels A firmer dollar and commodities selloff is also stifling the performance of the rand as economists fear for the long-term growth prospects of the currency. Summary: South Africa’s rand lost 2% in value in one day of trading following a global commodity selloff and the rise of the US dollar Political uncertainty and one of... Read more »