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Absa Forecasts 2.1% Growth, More Resilient Rand in 2022

SOUTH AFRICA

LOCAL NEWS

  • Absa forecasts 2.1% GDP growth in 2022, noting that inflation likely peaked in December and could result in fewer rate hikes, while the rand could be more resilient than expected despite a difficult political year
  • PWC expects the planned corporate tax cut from 28% to 27% in April is likely to be delayed as the base broadening measures that are supposed to go along with the measures to make it tax revenue neutral have not yet been implemented
  • Household affordability index shows food prices rising above inflation at 8.6% y/y. Average food basket in Jan 2022 costs R4,401.12, up R349.82 vs Jan 2021.
    • In December, food prices rose 2.9% with oranges (+40%), tomatoes (+27%), bananas (+11%) & Carrots (+10%) among the most affected. Chicken prices rose by 17% y/y while fuel prices rose 40%
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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