The sharp slide in oil prices will help to lower inflation in South Africa and is likely to make a significant dent in the country’s current account deficit. But while this may ease concerns about the economy’s vulnerabilities, the overall external shortfall deficit will remain fairly large, at close to 5% of GDP. What’s more, we don’t think lower oil prices will have much of an impact on GDP growth.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services