“THE COUNTRY posted a trade surplus of R4Bn, a decline from last month’s surplus of R5.9bn. The trade balance momentum is the one aspect that gives the country hope that things are not all that bad.

There are however factors to look forward to like the upcoming expansion in tourism activities and favorable outlook in the Agricultural spectrum. Another significant driver for economic recovery is the global growth that has seen supportive global demand and positive results in the mining sector, this strongly suggests meaningful contribution to Q3 GDP results to be released soon.

The expected public sector expenditure ceiling breach, recapitalisation of state owned companies, tax revenue shortfall and acceleration of public debt are some of the staggering insights revealed from the recent Medium Term Budget Policy (MTBP). Though global economic outlook is positive, the overall local economic performance has been diverging from global performance and as a result, limited benefits will be seen. Further to that, large capital outflows and the political landscape are likely to cause a negative shift in global investor sentiments. The current domestic landscape does not allow for continued momentum and the probable ratings downgrade ignite fear of what lies ahead for many.”