Commerzbank: Strong SA GDP Masks Weak Demand, Weighs on ZAR
South Africa's stronger-than-expected GDP growth hides soft domestic demand, with weak consumption and private investment, according to Commerzbank analyst Volkmar Baur.
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Commerzbank analyst Volkmar Baur notes that South Africa's latest GDP print, while stronger than expected, obscures a fragile domestic demand backdrop.
Consumption and private investment remain soft, with only government spending providing support. This quality of growth is seen as a negative factor for the South African rand (ZAR).
Source: FXStreet Forex News