Consumer spending is also expected to remain modest, capped by high household debt levels, low employment creation and rising administered prices.
More recently, concerns over the current account deficit have heightened, and these concerns have been propelled by the fact that South Africa’s terms of trade have deteriorated, exports have failed to react sufficiently to the weaker rand, and the global environment characterised for the best part of five years by easy liquidity, is in the process of transforming.