Though SA needs 5%-6% economic growth per annum to alleviate socioeconomic challenges such as poverty and unemployment, a mere 2% sustained expansion in GDP would be sufficient for investors to earn notable returns on domestic markets.

That’s the view of Izak Odendaal, investment strategist at Old Mutual Wealth, who says this rather cold reality has not been sufficiently priced in to local assets, which may still have room for further appreciation, if moderate growth can be sustained. Odendaal points out that in the five years that preceded the advent of Covid-19, SA recorded average economic growth of about 0.5% and that, if the country can manage to sustain just 2% GDP growth for five years, it could translate into robust investment returns over that time frame...

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