Economy / General

Outlook 2018: Global economy

The world economy is enjoying a synchronised upswing, in which most regions are generating good growth despite political upsets in some parts of the world. As a result, Schroders, a global asset manager, has upgraded their global growth forecast for 2018 to 3.3% from a previous estimate of 3.0%. This marks a modest acceleration from 2017, which is also upgraded to 3.2% from 3%. If correct, this would make 2018 the strongest year for global growth since 2011.

Rand joy at GDP stats

The rand rallied to a new high this afternoon as the GDP figures made their way to market. The general expectation was for GDP growth to come in at 1.7%, so 2% growth is a welcome surprise for the struggling South African economy. The rand strengthened to R13.45, but slipped back slightly to R13.50. The stronger rand is currently a function of our trading account surplus, stronger economic growth and positive expectations toward the ANC NEC election conference.

Analysis of S&P and Moody’s ratings announcement

South Africa ratings lowered on weakening economic and fiscal trajectory; outlook stable