For the first time since the devastating coronavirus pandemic hit, all the main economic pointers are heading in the right direction, resulting in what might be described as an audible sigh of economic relief.
That suggests that the rise in global food prices are filtering their way through to SA. This was counterbalanced by another drop in petrol prices. A similarly mixed picture emerges from BankservAfrica Economic Transactions Index , which flattened in November 2020, suggesting lower economic growth for Q4 2020, which may lead to reduced spending over the December holiday break.
With the extra spending via the Covid-19 UIF TERS payments ending in November and the increased Sassa grants closing in January 2021, some of the momentum for economic recovery will be lost.
The credit rating of SA was downgraded and the rand is improving because the USD is falling.
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