Equities on new record levels and Rand joins in

DESPITE the news from Statistics South Africa (StatsSA) that the South African economy recorded disappointing GDP growth (0.1%) in Q1 2025, and the news that Goodyear will close shop in RSA, resulting in nine hundred permanent job losses, the JSE and the Rand keep on recovering.

- CHRIS HARMSE

On the JSE the ALSI ended Friday on a new weekly close record of 96 366 or 2.1% higher than the previous Friday.

The index broke quickly through the 95 000 level on Monday and through 96 000 on Thursday.

The South African economy recorded worrying economic growth and employment numbers for the first quarter of 2005.

The economy in real terms advanced by only 0.2%, with manufacturing (-0.2%), mining 9-0.2%), construction (-0.1%) contributing towards a worrying picture. Since 2022 three quarters of contraction were recorded.

The unemployment rate also shows a disturbing movement as it started to accelerate strongly in the fourth quarter of 2024, reaching 32.9% in Q1 2025.

Prospects for economic growth for 2025 were downscaled to 1.4% for 2025 in the third national revised budget against the 1.9% forecast in the first budget proposals.

Investors on the South Africa equity and bond markets see the country still as an investment haven.