Increase oil prices pose a risk to inflation, economic growth: Economist - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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A Chief Economist at Investec, Annabel Bishop, says while South Africa may stand to gain from higher commodity prices through a trade surplus, increased oil prices pose a risk to inflation and economic growth. Oil

A worker collects a crude oil sample at an oil well operated by Venezuela's state oil company PDVSA in Morichal, Venezuela, July 28, 2011.A worker collects a crude oil sample at an oil well operated by Venezuela's state oil company PDVSA in Morichal, Venezuela, July 28, 2011.

A Chief Economist at Investec, Annabel Bishop, says while South Africa may stand to gain from higher commodity prices through a trade surplus,This after the Gross Domestic Product data released by Statistics South Africa showed that the country’s economy grew by 4.9% in 2021 following a 6.9 contraction in 2020.Investec has downgraded its economic growth forecast for this year from 1.8% to 1.6% on the back of rising risks posed on the local economy by the Russia-Ukraine war.

“The reality of the situation is that the very high oil prices, as oil is South Africa’s main import, will counteract the positive impact from South Africa’s commodity exports. South Africa exports a lot of agricultural goods, both edible and non-edible and of course metals and minerals.

 

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