By 
5. China’s fight against weak demand. In stark contrast to the inflationary pressures experienced globally, China faced persistent deflationary challenges throughout 2024. While much of the world tightened monetary policies in response to rising prices, China deployed interest rate cuts and liquidity injections to stimulate demand. Despite these efforts, domestic consumption remained constrained, compounded by a struggling property market. However, China’s export sector demonstrated remarkable resilience, buoyed by sturdy global demand and competitive pricing strategies.
6. South Africa’s energy revival. After years of debilitating load-shedding, South Africa’s power sector turned a corner. The successful execution of the energy action plan revitalised Eskom’s ageing power stations, boosted private sector participation in generation capacity and restored energy reliability, offering a much-needed economic reprieve.
7. Voter discontent sparks political realignment in South Africa. In May, the ANC lost its majority for the first time since the end of apartheid, paving the way for a government of national unity. This dramatic shift in South Africa’s political landscape can be attributed to widespread discontent with the ANC’s governance, failures in service delivery, economic stagnation and the rapid rise of the MK Party, which capitalised on these sentiments. As a result of these changes, South Africa’s political environment has matured, advancing collaboration across ideological lines to address pressing national issues and reshape the future of governance in the country.
8. Inflation tamed to below 3% in South Africa. Declining food and energy prices contributed to cooling inflation, allowing the Reserve Bank to ease monetary policy. Nevertheless, apprehensions remain regarding stubborn inflation in certain categories, particularly medical costs§ averaging 9.2% since 2009, along with electricity prices at 11.9% and water at 7.9%.
Comments