We have revised our USD/ZAR forecast! We expect external imbalances, domestic uncertainties and weak global demand to gradually weaken the ZAR towards 2014-15.
The small GDP pick-up recorded in Q2 2013 will likely prove to be short-lived as high-frequency indicators point to a downturn in Q3. Manufacturing production contracted by 3.7% in Q3, underlining the struggling industry. In addition, energy constraints, domestic unrest and weak European activity (South Africa’s largest trading partner) continue to weigh on economic activity.
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Nordea