Absa’s Q4’24 quarterly perspectives for S.Africa
Despite continued stability in electricity supply, recent activity data suggest broadly subdued growth momentum. ABSA has maintained its real GDP growth forecast for the year at 1.0 per cent, but this is 0.1pp lower than in the last Quarterly Perspectives. They believe consumer spending growth will improve as financial headwinds abate. CNBC Africa is joined by Miyelani Maluleke, Senior Economist, Absa CIB.
Wed, 27 Nov 2024 15:36:44 GMT
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AI Generated Summary
- Despite stable electricity supply, recent data suggests subdued growth momentum in South Africa.
- Absa maintains its real GDP growth forecast for 2024 at 1.0%, with expectations of a pickup in 2025.
- Factors such as infrastructure investments, improved confidence, and macroeconomic conditions could drive economic growth in South Africa.
Absa's Senior Economist, Miyelani Maluleke, recently shared insights on South Africa's economic outlook for the fourth quarter of 2024. Despite stable electricity supply, recent data suggests subdued growth momentum. Absa has maintained its real GDP growth forecast for the year at 1.0 per cent, slightly lower than the previous quarterly perspectives. Maluleke highlighted the challenges faced by the economy, including the impact of electricity supply constraints, consumer financial pressures, and potential scarring effects from recent shocks. The third quarter GDP growth is expected to be modest at 0.3 per cent, reflecting ongoing weaknesses in domestic demand. However, Absa remains optimistic about a potential growth pickup in the coming year, driven by infrastructure investments, improved confidence, and favorable macroeconomic conditions. Consumer spending growth is anticipated to improve as financial headwinds abate, with projected GDP growth exceeding 2% in 2025.
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