After experiencing four consecutive quarters of contraction because of droughts and foot-and-mouth disease amongst other factors, South Africa’s agriculture economy rebounded in the first quarter of 2020 by 27.8% q/q on a seasonally-adjusted and annualised basis.
The high-frequency data on both domestic and global markets reinforced our view that grain prices could be under pressure this year and that, in turn, could lead to subdued food price inflation.
There is consensus amongst South Africa’s agricultural economists that the next frontiers for growth in the sector will be through the expansion of production mainly in the former homelands provinces (KwaZulu Natal, Eastern Cape and Limpopo).
By Koos du Plessis, FISA member, CFP®, FPSA® and Sales Manager: Southern Cape for Sanlam.
One of the key questions that consistently arises amid the COVID-19 pandemic’s impact on the economy is about the effects on employment.
As COVID-19 slows in developed countries, the virus’s spread is speeding up in the developing world.
