Political Turmoil Clouds Sas Economic Outlook: Economist

Economist says recent developments around the government of national unity have cast a cloud on the countrys economic future. On Wednesday, the Democratic Alliance DA voted against the 2025 fiscal framework passed by the National Assembly during a heated session.

Standard Chartered Chief Economist for Africa and the Middle East Razia Khan says South Africas economic challenges were already present before recent global market volatility and Donald Trumps tariff announcements.

Investor sentiment right now is so vulnerable and so much on the back foot in any case because of global developments. But it also means that it isnt necessarily the case that investors are going to look at the GNU in the same way as they once did. The damage is done in a sense.

Khan anticipates investors will adopt a wait and see approach, adding that maintaining a centrist path would still be seen as market-friendly.

On whether the budget will be able to deliver in this fiscal year amid the global uncertainty, she says it is a difficult call to make given the nature of the global shocks that we face.