South Africa’s Q1 GDP figures released this week revealed a big drag from the agricultural sector. Some of the factors that weighed on output (namely the weather) are likely to prove temporary but, even so, confidence in the sector is low and other impediments will be more difficult to overcome. Meanwhile, current account data that showed a narrower-than-expected shortfall in Q1 provided some support to the rand. However, concerns about the energy crisis, the public finances, as well as the general direction of policymaking as the 2024 elections loom, mean that the currency will remain on the backfoot.
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