Menu

Now Reading
South Africa to release December balance of trade

Menu

South Africa to release December balance of trade

Photo: Getty

South Africa’s balance of trade for the month of December is set to be released today.

Africa’s third-largest economy beat market expectations of $1.5 billion in trade surplus, rising to $2.4 billion in November, up from the $2.26 billion recorded the month prior. Prior to the pandemic, South Africa was already in a slump due to excessive bailouts of state-owned companies, which drained public funds. The pandemic has plunged South Africa into the deepest contractions in 90 years. As a result, the nation took out a $4.3 billion loan from the IMF.

Expect South African economists to work to rectify poor financial structures towards the goal of a budget surplus in 2026. However, the austere budgetary plans will likely elicit a backlash from workers’ unions as politicians have proposed cutting back on government subsidised salaries. Moreover, recent power cuts from the state-owned electricity company Eskom both demonstrate the impediments to economic growth and act as a signal to the government regarding improving the performance and efficiency of state-owned companies. With such obstacles ahead, the IMF has downwardly revised its growth projection from 3% to 2.8% for 2021.

See Also
China’s top legislative body to open today

Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.

View Comments (0)

Leave a Reply

Your email address will not be published.

Scroll To Top