Description

The regional outlook remains depressing for H1 2016, as Brazil and Russia still are technically in recession. Slowdown in China and strengthening of the US dollar have weakened global commodity prices. This has severely hampered the South African economy as it is highly reliant on commodity exports. Moreover, continuous inflation and tightening of monetary policy are also acting as growth deterrents to the South African economy. On the other hand, India still remains the most promising economy in the region, with business sentiments bullish and heavily reliant on the promised structural reforms. However, the reforms are getting implemented slowly, which remains an area of concern for the Indian Government.