Investors predict more interest rate cuts by the Reserve Bank following Tuesday’s historic contraction in the country’s Growth Domestic Product.
South Africa’s GDP contracted by an annualised 51 percent in the second quarter of 2020.
President Cyril Ramaphosa says a Social Compact on Economic Recovery will be presented to him after consultations with the advisory council, NEDLAC. The government will then finalise its Economic Recovery Strategy.
Ramaphosa also says the Presidential Employment Stimulus will commence implementation within the next month to increase job opportunities through public and social employment to counteract job losses.
The bank’s Monetary Policy Committee will meet again next week.
It’s the fourth consecutive quarter that SA records negative economic growth:
Effects of SA’s GDP data on unemployment figures expected later this month
The Statistician-General of South Africa Risenga Maluleke delivered the worst economic news in a generation, saying the South African economy has collapsed significantly.
The Gross Domestic Product (GDP) shrank an annualised 51% in the three months to June 2020 compared to the first quarter.
The figures are so dire that many have begun to wonder just how concerning the unemployment figures contained in the Quarterly Labour Force Survey due out this month, will be.
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