Trade rifts, Asian competition test SA’s economic resilience, warns Goolam Ballim

SOUTH Africa's economic resilience is being tested by rising trade frictions with the United States, intensifying competition from Asia, and a rapidly shifting global order that is fragmenting longstanding trade relationships, according to Standard Bank chief economist Goolam Ballim.

- SIPHELELE DLUDLA

This comes as South Africa's trade relations with the US, its third largest trading partner after China and the European Union, have become strained over an ongoing diplomatic fallout.

During a presentation on the economic outlook for 2026 on Tuesday, Ballim said restricted access to the American market was already proving damaging for key sectors of the economy.

"I cannot deny that not accessing the United States market as liberally as we did in the past is problematic," Ballim said, pointing to the depth and growth of US consumer demand.

"America's consumer market is deep, and the growth is rapid." Ballim said the impact of these constraints had been felt unevenly across industries, with agriculture facing growing pressure and the automotive sector bearing the brunt of the shock.