South Africa's Economy in Q2-19: Fragile Still?


Friday, September 27, 2019   / 03:00PM / United Capital Research / Header Image Credit:


Recently, the South African Reserve Bank (SARB) published its Q2-19 statistical bulletin. According to the report, real economic activity rebounded during the period, up 3.1% q/q and 0.9% y/y in Q219 compared -3.1% q/q and 0.0% y/y in Q1-19. This was buoyed by the improvement in the power situation of the country that had hampered output in Q1-19. Also, the report showed that Foreign Direct Investment (FDI) inflows rose from c. $0.8bn in Q1-19 to $1.8bn in Q2-19 as domestic firms received debt and equity funding from foreign parent companies.

However, the report showed that the S/Africa's official unemployment rate increased markedly to 29.0% in Q2-19 - the highest since the inception of the Quarterly Labour Force Survey in 2008. This was worsened by a significant number of new entrants and previously discouraged work-seekers actively searching for jobs which entered the labour market and elevated the number of unemployed people to a new all-time high.

South Africa's trade balance with the rest of the world switched from a surplus in Q1-19 to a deficit in Q2-19, as the increase in the value of net gold and merchandise exports was less than that of imports. In all, investor confidence in South Africa remains fragile, while the economic growth outlook is clouded by a lack of clarity and progress on reforms.


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Looking Forward 


Sep-19 Policy Rate Decision - September 27th 

Aug-19 Net Reserves - September 30th 



Jul-19 Trade Balance -  September 30th

Q2-19 GDP Report- September 30th 



Jul-19 M2 Money Supply - September 30th 



Q2-19 GDP Report– October 11th 



Q2-19 GDP Report - September 30th



Q2-19 GDP Report - September 30th

Aug-19 M3 Money Supply - September 30th 



Q2-19 Current Account - September 27th

Aug-19 Private Sector Credit - September 30th 


South Africa

Aug-19 Electricity Production - September 30th 

Aug-19 Private Sector Credit - September 30th 


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