SA economy recovering faster than expected - 4% growth a possibility in 2021
The International Monetary Fund (IMF) expects world economic growth in 2021 to outpace pre-pandemic levels by 2%.
Central banks in developed economies assisted by buying record amounts of government bonds.
In South Africa, budgetary support equalled about 3% to 4% of GDP.
Inflation in the country remains subdued, and interest rates near all-time lows.
The pace of the economic recovery globally and at home has caught many by surprise, says Patrice Rassou, Chief Investment Officer at Ashburton Investments.
One reason is skyrocketing commodity prices, particularly the platinum group metals, while another is booming agricultural exports.
Rassou expects growth near 4% for the year.
The Money Show’s Bruce Whitfield interviewed Rassou.
It’s the vaccinated versus the unvaccinated. It’s also the central banks with fire power… While we are lagging behind… the rising tide has lifted all boats...Patrice Rassou, Chief Investment Officer - Ashburton Investments
Mineral sales are at record levels…Patrice Rassou, Chief Investment Officer - Ashburton Investments
We can post 4% growth… There are a few positive drivers we didn’t anticipate a year ago… The fiscus is getting a bit of a boost from better revenue collection…Patrice Rassou, Chief Investment Officer - Ashburton Investments
We’ve started outperforming our emerging market peers…Patrice Rassou, Chief Investment Officer - Ashburton Investments
Listen to the interview in the audio below.
Source : https://www.123rf.com/photo_64920916_south-africa-economy-and-financial-market-growth-concept-3d-rendering.html