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2025-09-18 21:01:56
South Africa Economic Outlook: Rising Inflation and Accelerating Growth (1) The South African Reserve Bank (RBA) recently released its latest interest rate decision, the core message of which is that the South African economy is facing a situation of rising inflation and accelerating economic growth. (2) Official data show that headline inflation in South Africa has recently rebounded, but core inflation remains around 3%. (3) The RBA expects headline inflation to continue to rise in the coming months and may peak at 4%. (4) Although the export outlook appears weak due to higher tariffs, the RBA has raised its economic growth forecast for this year from 0.9% to 1.2%. (5) Looking ahead, the RBA believes that economic output will increase moderately in the coming years thanks to structural reforms, but a significant increase in investment is needed to achieve healthier growth. (6) Currently, the RBA believes that the risk assessment of the inflation and economic growth outlook is balanced.
