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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
MNI (London)
SOUTH AFRICA Q2 GDP -0.7% Q/Q (FCST -0.8%); +1.7%r Q/Q 2022Q1
SOUTH AFRICA Q2 GDP +0.2% Y/Y (FCST +0.6%); +2.7%r Y/Y 2022Q1
- South Africa recorded its first GDP q/q contraction since Q3 2021 due to a significant drag in manufacturing. Both load shedding and devastating floods hampered production capacity throughout the quarter, the flooding alone affecting one-fifth of South African manufacturing.
- As this data was largely in line with market expectations, little movement was seen in the Rand.
- Load-shedding reduced both trading hours and production capacity, whilst agricultural industries suffered further from the outbreak of disease in Q2. However, a significant upswing was noted in financial industries, boosting Q2 GDP.
- Statistics South Africa noted that 6 out of 10 industries have still failed to recover to pre-pandemic levels (transport and communication, energy and water, trade catering accommodation, manufacturing, mining, construction).
- The SARB is meeting next on September 22, with the market expecting a rate rise of as much as 75bps following headline CPI hitting 7.8% y/y in July (August data is due Sep 21). Inflation concerns and maintaining pace with global interest rates outweigh growth concerns for the time being.
Source: Statistics South Africa
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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