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Sanisha Packirisamy. Picture: SUPPLIED
Sanisha Packirisamy. Picture: SUPPLIED

An analysis of economic events affecting SA today is the focus in this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by Sanisha Packirisamy, an economist at Momentum Investments.

The discussion takes look back at some of the major economic events over the past year, connecting the dots on how local and international factors have led to where SA is today.

Packirisamy begins by talking about global inflation fears — what is driving it and expectations —  highlighting energy costs, supply chain disruptions and other factors that are feeding such concerns. 

The Reserve Bank’s monetary policy committee recently raised interest rates by 0.25%, with more increases expected in the coming year, all in an effort to mitigate inflation risks. We explore specific drivers of inflation in SA and downward pressure in services, among other things.

Mudiwa Gavaza. Picture: DOROTHY KGOSI.
Mudiwa Gavaza. Picture: DOROTHY KGOSI.

Packirisamy also highlights the regulatory crackdown in China that has seen technology companies in particular being curtailed in some of their expansion plans. We discuss the reasons behind the crackdown, its effect on the global economy, various scenarios for China and what this means for policy and growth.

Earlier in November, finance minister Enoch Godongwana tabled his first medium-term budget policy statement (MTBPS), saying that state-owned companies need tough love, and a decision on a basic income grant will be made in February. Packirisamy highlights the commodity windfall, social grants, the wage bill and what all this means for SA’s credit ratings. 

The discussion ends by dissecting the recent local government elections, focusing on the trust deficit, voter apathy and service delivery. 

Topics of discussion include: local and international inflationary pressures; how the Bank is aiming to limit inflation risk through interest rates; the regulatory crackdown in China; the MTBPS; and local government elections. 

Engage on Twitter at #BDSpotlight

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 Business Day Spotlight is a TimesLIVE Podcasts production.

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