Pandemic and QE will support SA in the short term, says Citi boss
But structural reform and a stable policy base is what will really drive growth, says the bank’s country officer Peter Taylor
Citi’s local boss says that the global arrival of the pandemic has mitigated the difficult financial position SA finds itself in and, together with the reintroduction of quantitative easing (QE) in the developed world, will support SA’s borrowing and currency for the foreseeable future.
“Covid-19 has taken away some of that differentiation because it threw all emerging markets into a similar place from an economic perspective. SA was looking particularly sluggish among its emerging market peers, and we were getting penalised for it, but now many more countries are stressed, and public finances are being squeezed across the board,” says country officer Peter Taylor. ..