Monetary Tightening To Weigh On Growth

May 2008 | Economic Analysis

We forecast that South African economic growth will weaken significantly in 2008, which will be mainly a result of further monetary tightening and weaker external demand. In our view, aside from higher interest rates, rising inflationary pressures could lead to further social instability, posing a key risk to the country's buoyant tourism industry and its prospects for holding the 2010 FIFA World Cup.

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