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SARB reports GDP growth and impact on economic recovery due to unrest

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The governor of the Reserve Bank has delivered the MPC statement, noting that the GDP for 2021 Q1 grew by 4.6 percent, and that the unrest would impact the economy.

Governor of the South African Reserve Bank (SARB), Lesetja Kganyago, on Thursday, 22 July 2021, delivered the Monetary Policy Committee Statement (MPC) during the SARB MPC press conference. The governor reported that SARB’s forecast for global growth in 2021 sits at 6.1 percent. In 2022, the governor stated that SARB expected a global growth of 4.4 percent and 3.4 percent in the year 2023.

Kganyago stated that the gross domestic product (GDP) for quarter one grew by 4.6 percent, which the governor noted was much stronger than the 2.7 percent expected at the time of a meeting in May. The governor further stated that the outcome reflected better sectoral growth performances and robust terms of trade in 2021H1. Kganyago confirmed that commodity prices have remained high and sustained income gains, despite higher oil prices.

The governor also touched on the recent unrest, stating that the economic damage could have lasting effects on investor confidence and job creation. He noted that the direct and indirect costs of the events would most likely further slow down South Africa’s economic recovery. SARB estimates that the GDP growth for 2021 remains unchanged at 4.2 percent, while 2022 growth is slightly lower at 2.3 percent.

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Mahlohonolo Lakaje
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