Explore the Category

Budget expected to reveal short-term pain, long-term gain for SA's wealthy

29 January 2015

South Africans, and especially high net worth individuals, should brace themselves for significant tax increases across the board when Finance Minister, Nhlanhla Nene, announces the Budget for the new tax year, says Old Mutual Investment Group Senior Economist, Johann Els. But this is not altogether bad news, and should indeed be welcomed, he adds.

Supply side will limit the oil windfall

28 January 2015

? SA GDP growth is forecast to rebound to an average of 2.5% in 2015 ? We expect inflation to slow to an average of 3.5% in 2015 on the back of a falling fuel price and weaker food inflation ? The moderating inflation profile indicates that the SARB is likely to leave interest rates on hold for the duration of 2015, but should resume the hiking cycle in 2016 ? The current account deficit is expected to narrow in 2015 as import growth slows ? A gradual narrowing of the current account deficit implies that the Rand/US Dollar exchange rate should depreciate only modestly in 2015

Plummeting oil price could drive a surprise turnaround for SA

27 January 2015

Recent drastic declines in the international oil price and the resultant sharp cuts in the local petrol price could herald a sharp turnaround in South Africa’s more immediate fortunes, says Old Mutual Investment Group. And this sharp fall, if sustained, will have a number of positive impacts on the SA economy, starting with the consumer and reduced inflation.