The cost of financing debt has risen, and this will place pressure on overstretched economies, at least until we see whether the shift results in better real economic growth outcomes. But that outcome will remain unclear for some time.
Stronger US and global growth rates could entail improvements down the line in emerging market exports and commodity prices, and an improvement in South Africa’s current account deficit. But much depends on whether higher tariff barriers are realised and on how capital markets assess US fiscal policy.