Recent high frequency data and ongoing structural headwinds suggest that economic growth in South Africa (NYSE:EZA) is likely to slow once again following a short-lived cyclical rebound in the second-half of 2018.
South Africa - Quarterly GDP Growth (Seasonally Adjusted and Annualised)
Source: Tradingeconomics.com
Recent manufacturing production data for January showed a sharp 2% m/m contraction, while on a y/y comparative basis, output growth has also once again stalled printing at 0% y/y in December and 0.3% y/y in January.
Source: Statistics South Africa
Furthermore, the outlook for the rest of the quarter