What to look out for this week for clues to SA’s economic health
1. Brics summit
• When: Wednesday to Friday
• What it is: a gathering of officials, including presidents, from Brazil, Russia, India, China and SA.
• Finance Minister Nhlanhla Nene opens a conference on SA’s priorities for the summit.
• Why it matters: it could prove vital in President Cyril Ramaphosa achieving his ambitious $100bn investment target.
2. Tourism and other stats
• When: Monday
• What: Statistics SA releases stats on the health of tourism and accommodation, food and beverage sales, land transport, and liquidations and insolvencies.
• Why they matter: tourism is a key contributor to SA’s gross domestic product, while food and beverage sales offer insight into how consumers are holding up. The land transport survey gives an indication of economic activity, especially in transport-heavy sectors such as mining.
3. Producer inflation
• When: Thursday
• Why it matters: The Reserve Bank has warned that there are upward pressures on inflation. If inflation accelerates too quickly, the Bank may be forced to raise interest rates, dealing a blow to the already-struggling economy.
See here for more on these economic gauges.