SOUTH Africa is likely to see a subdued year of growth in 2022, but certain key events such as the ANC’s elective conference in December could have a significant impact on the economy.
Credit ratings agency Fitch forecasts that the ongoing impact of the Covid-19 pandemic, fading base effects, and persistent structural constraints will see the country’s economic growth slow to 2.1% in 2022.
It added that poor labour market conditions will cap private consumption growth.
The rating agency said that government consumption and investment will provide some tailwinds to economic growth and that the South African Reserve Bank (SARB) to maintain a hawkish bias over the course of 2022.
Key to this is that Fitch anticipates president Cyril Ramaphosa to face continued opposition from leftist elements within the ruling African National Congress (ANC), but to survive a leadership challenge at the party’s elective conference in December 2022.
“Markets broadly
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