Exports
South Africa's export market has been doing well this year. Exports have grown by 11,3% year to date, while imports grew by 4% year to date. This is due mainly to the market fluctuations that have been seen globally this year. The rand experienced a weak few months at the beginning of the year and has recently improved. The weaker rand provided improved opportunities for exporters to sell their goods.
Manufacturing production increased by 4% in May 2016 compared with May 2015 – this was more than expected by the market. Although manufacturing was one of the sectors that impacted the 1,2% contraction of the GDP in the first quarter, there have been some pockets of growth within the sector including food and beverages; petroleum; wood and wood products as well as iron and steel. The manufacturing sector provides an opportunity to build a better, more collaborative mutually beneficial relationship between the public and private sector. The sector has potential to contribute greatly to the country’s growth if more innovation and collaboration is brought into the sector.
The economy has benefitted from improved weather after the severe drought and lower oil prices. The rand has made gains for a number of weeks following the Brexit decision and has appreciated against the US dollar by 8,4% in the past month.
Businesses in the private sector could contribute to growth of the economy by bringing agility and innovation to the table. Collaboration and competition in the market are important for bringing about a thriving economy. Improvements in manufacturing as one sector would have a greater impact on the wholesale retail trade sector. This would in turn benefit the economy and give rise to opportunities for financial institutions to support and sustain the growth.
