- This year, South Africa has been navigating a perfect storm, as its economic woes have been exacerbated by the pandemic.
- Though 2020 will likely be overshadowed by an 8% reduction in real gross domestic product, the IMF is expecting the metric to increase by 3% in 2021.
- The forecast will never materialize if draconian measures return to curb the spread of the COVID-19 mutation.
- EZA has inadequate diversification and large exposure to the vulnerable financial sector.
- The overall economic gloom is not going to evaporate in a second, and the risk/reward profile of investing in this emerging market does not look appealing to me.
For further details see:
EZA: Avoid Due To Numerous Risks