June 2020

15 June 2020 – Ratings agency Fitch says it’s expecting South Africa’s economy to shrink 5.5% this year, as the coronavirus lockdown batters an economy already in recession. Fitch downgraded South Africa’s credit rating further into “junk” territory in April, citing the lack of a clear path towards government debt stabilisation and the expected impact […]

12 June 2020 – While global trade was already slowing down prior to the Covid-19 pandemic, the United Nations Conference on Trade and Development (Unctad) states that economic and social disruptions brought about by Covid-19 are resulting in a dramatic decline in trade. As laid out in Unctad’s global trade update for June, the value

11 June 2020 – Business confidence plummeted to its lowest level yet during the second quarter as SA’s already-weak economy grappled with the unprecedented shock of the coronavirus pandemic. The latest RMB/BER business confidence index (BCI) released on Wednesday slumped to a mere five index points, the lowest since the survey began in 1975. This

10 June 2020 – The coronavirus pandemic could cost Africa as much as $4.8 billion in lost agricultural exports and affect the livelihoods of 10 million farmers, McKinsey & Co said. Disruptions ranging from canceled flights to the closure of chocolate factories in Europe have limited exports of crops ranging from nuts to roses, according

9 June 2020 – A new World Bank report warns that the South African economy will experience its deepest economic contraction in a century this year, with the country’s gross domestic product (GDP) forecast to slump by 7.1% on the back of “stringent but necessary” Covid-19 containment measures. The bank’s ‘2020 Global Economic Prospects’ report,

8 June 2020 – In six months’ time the world’s gaze will be trained on what is gearing up to be a contentious and hotly contested presidential election in the US. Irrespective of who emerges victorious between the incumbent President Donald Trump and the Democratic nominee Joe Biden South Africa needs to start thinking about

5 June 2020 – Exports through the Port of Cape Town will not be allowed for all of Friday, 05 June 2020, this includes all stacking scheduled for the day. Transnet has reportedly told exporters and related transport concerns. Furthermore, although this amounts to a day-long shutdown of ordinary container throughput for the port, the

4 June 2020 – South Africa’s maize exports proceeded swiftly during April and May despite disruptions to trade caused by the coronavirus disease (COVID-19) pandemic, according to Johan Straus, agricultural economist at the University of the Free State. He said almost 1,45 million tons of maize were exported during the 2019/2020 production season. “The ‘maize year’

3 June 2020 – Conditions in the manufacturing sector improved during May, as SA went into level 4 of the Covid-19 lockdown, easing some of the constraints on the sector and the wider economy. However, important subcomponents of the Absa purchasing managers index (PMI) remained in depressed territory — despite showing a recovery from historic

2 June 2020 – While South Africa’s hard lockdown has clearly helped to flatten the Covid-19 curve, the economic data paints a gloomier picture. According to the Bureau for Economic Research (BER), data released last week further highlights the severe impact that this has had on the economy. “In April, SA recorded a massive trade