Economy

GDP in the second quarter of 2020

The South African economy contracted for the fourth consecutive quarter, plunging deeper into recession. Gross Domestic Product (GDP) in the second quarter was half that of the first quarter, having declined by 51.0% in Q2, and by 17.1% on a year-on-year basis. The reported numbers were slightly worse than expected, but forecasts were understandably difficult to make under the circumstances.

Private sector credit growth slows, again

Private sector credit (extended to households and corporates) eased further to 5.1% y/y in July, from 5.6% in the previous month. Downward pressure came from corporate credit, while household credit moved sideways.

Inflation back in target range during July

PPS Investment - CPI announcement

Consumer price inflation increased by 3.2% year-on-year as at the end of July 2020, which was sharply up from the 2.2% year-on-year increase from the previous month.