Lukman Otunuga,
FXTM Senior Research
Analyst
The Rand has fallen out of favour with
investors today, tumbling roughly 1.0% against the Dollar to hit 14.68
following the abysmal announcement that the South African economy contracted by
0.6% during the third quarter of 2019.
Extra-smart
Nigerians are getting shares of the new Lagos by acquiring plots, acres and
hectares of land at Ibeju Lekki . What are you waiting for? Click: http://www.tectono-business.com/2019/07/have-share-of-new-lagos-by-investing-in.html
Unfavourable global macroeconomic
conditions inspired by world trade uncertainty are certainly not providing the
South African economy any favours, while domestic risks continue to add up and
weigh further on Africa’s most industrialized economy.
The reality from this economic
announcement is that it will bite on sentiment that full year growth is at
threat to being dramatically lower than the 0.5% for 2019 that was projected by
the Treasury in October and even the impression from the IMF only last week
where the institution indicated that the economy will grow just above 0% this
year.
These landed properties with C
of O @ Abraham Adesanya Roundabout, Lekki suit your taste. Your colleagues have
started buying. What are you waiting for? Click: http://www.tectono-business.com/2019/08/urban-prime-one-estate.html
It is worth keeping in mind that global
trade tensions have not only impacted South Africa, but many major economies
across the world. With the contraction in Q3 increasing the probability of
South Africa losing its last remaining credit rating by Moody’s, the central
bank in South Africa is positioned to ease monetary policy during the first
quarter of 2020.
Further signs of easing inflationary
pressures and disappointing economic data is only adding further weight to the
case that the SARB should cut interest rates from 6.5% in an attempt to
stimulate the economy and aim to drive consumption forward.
Have
you thought about having a 5-Bedroom Apartment with Penthouse and Indoor
Swimming Pool near Pan Atlantic University?
For details, click: http://www.tectono-business.com/2019/08/have-you-thought-about-having-5-bedroom.html
Following the GDP reading a great level
of attention will be on SARB to increase monetary action to jumpstart the local
economy, but this is only part of the equation. The other answer to the
equation is that the government needs to pursue economic reforms and fiscal
policy to drive the economy.
The 2020 budget statement will now be
viewed as critical towards helping the economy but it is scheduled for release
in February and efforts need to be made now, otherwise the risk is present that
actions could be too late.
No comments:
Post a Comment