South Africa continues to be precariously positioned given weak growth outcomes and rising political uncertainty.

Since the mid-1990s there was a clear correlation between South African and global growth. As the country opened and became integrated into the world economy, its fortunes were closely linked to the rest of the world. Recent data, however, now indicates that over the last 3 years, this correlation with the world economy is breaking down. At a high level, while global growth has recovered, South Africa’s growth has pulled back. It is interesting to note that our neighbouring countries, in sub-Saharan Africa, is expected to grow above 5% over the next ten years.

South Africa’s persistent challenges of poverty and unemployment continue to hold back our economic prospects. Political instability, low fixed investments and credit ratings downgrades have dented business and consumer confidence in South Africa. The situation has the most serious consequences for the poor who have no defence against the economic fallout of the country.

In turbulent times like these it is worth remembering that we are in period of profound political and economic change around the world. The shocking developments of the last 12 months continue to shift the ground under our feet. The new US president keeps on upsetting geopolitics, while the UK snap elections that has led to a “hung parliament” causes further uncertainly for the Brexit outcomes.

At Aspire, we continue to focus on building diversified portfolios that can withstand the economic shocks that seem to keep coming our way. We continue to be steadfast in our focus and commitment to deliver investment excellence for our clients.

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