China’s in trouble. Why that’s bad news for South Africa
Demand for, and prices of, key domestic exports are likely to fall, and the negative sentiment isn’t helping the rand
The surprising weakness in the Chinese economy matters to South Africa. Not only is China the largest and most dominant member of the Brics grouping (Brazil, Russia, India, China and South Africa), it is also the largest consumer of South African commodity exports and thereby a key driver of the rand exchange rate.
Economists have been agog over the fact that China’s headline inflation rate turned negative in July at a time when inflation in the rest of the world remains high. This highlights the fact that most of China’s problems are home-grown. They include an imploding real estate market, weak income and consumption, poor demographics and a controlling government that’s often hostile to entrepreneurship...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.