Investments / Economy

The year of the ballot

Economies at a Glance for April 2024

Economies at a Glance by Momentum Investments’ macro research team consists of an easy-to-read chartbook of what is happening in the economy and a snapshot of the index returns for the month.

Rate cuts look less likely as inflation remains sticky

Financial and risk advisers who were hoping for better economic growth or interest rate cuts to lift the mood at upcoming client interactions will be sorely disappointed. As the 29 May 2024 National Elections loom, all you can truthfully report to clients is another downward revision in South Africa’s GDP growth forecast. And as for interest rates, you could hint at a possible pre-election windfall; but deep down you know the South African Reserve Bank (SARB) has been tough on inflation, and is unlikely to cut yet.

A big election year globally, but there’s room for cautious optimism amongst investors

Adriaan Pask – Chief Investment Officer at PSG Wealth – says that with interest rate cuts on the horizon, improvements in load shedding, and a recent uptick in commodity prices, it seems like we're transitioning into an environment that could favour a more positive outcome for South African equities.