The GDP print for the fourth quarter of 2020 has come in better than expected, seeing markets respond positively in terms of rand strength and bond yields.

Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated by the reaction from markets.

Latest GDP figures have laid bare the grim reality of COVID-19’s economic effects, revealing an unprecedented 51% decline in economic activity in the second quarter of this year (quarter-on-quarter, seasonally adjusted and annualised).

It’s been over a decade since the start of the Global Financial Crisis , and markets have rebounded spectacularly in the years that have followed.

Poor GDP figures released today revealed that South Africa has entered a technical recession following two consecutive quarters of negative economic growth, heightening the country’s risk of suffering yet another credit downgrade in the second half of the year, says Citadel Chief Economist and Advisory Partner Maarten Ackerman.

Better than expected GDP figures for 2017 released today brought sighs of relief all round after an unquestionably tough year economically for South Africa.

In his 2018 Budget Speech, Finance Minister Malusi Gigaba has found a balance between raising taxes on the wealthy, broadening the tax base and providing a safety net for the poor.