November 17, 2021

South Africa unearths hidden strengths during pandemic

This October, OMFIF and ABSA launch the fifth edition of the ABSA Africa Financial Markets Index, the region’s financial market development benchmark. South Africa, the index’s top scorer, is steering through the Covid-19 crisis better than initially expected. Its fiscal deficit is lower than was predicted at the beginning of the pandemic, and the country is projected to experience a more robust recovery in 2021.

At a meeting hosted by OMFIF in May, a prominent representative from the central banking community said, ‘The Covid shock that hit the South African economy found an economy that was already in a recession,’ having undergone a meagre growth of 0.15% of gross domestic product in 2019, down from 0.79% the year before.

The South African Reserve Bank responded to Covid-19 through a range of conventional monetary policy instruments. The policy rate was reduced progressively…

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