The last few months have revealed how unwilling global governments are to end lockdown restrictions and relinquish lockdown powers. The world is struggling to get back to normal and this will have a negative impact on South Africa’s fragile recovery.
While SA production is recovering, household incomes remained under strain in Q3. Spending activity is partially supported by extreme low interest rates and large government deficits, neither of which reflect long-term economic health.
Despite enormous fiscal pressure, our SA policy scorecard has improved somewhat. This largely reflects continued relative SARB prudence, recovering electricity output with more grid stability, and better job market indicators since the Q2 employment slump.
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