SA economy on the up

Lower interest rates, more stable rand expected, say experts.

- Ina Operman

Economists believe that South Africa's economy will improve this year, but warn that geopolitical risks remain elevated with post-US election policies, including tariffs, potentially hitting growth and inflation in 2026.

Johann Els, group chief economist at Old Mutual, expected that growth in the world economy will slow modestly in 2025, with increased uncertainty due to US tariff policies. He also predicted inflation will slow further, but at a more moderate rate than in 2024, with more repo rate cuts in the first half of the year in developed and emerging economies.