Concerns about what the new administration could mean for South Africa have been raised since the election in November last year. The rand fell sharply on the announcement of the
However, many observers have indicated that a more pressing issue at present is the lack of clarity of President Trump’s policy direction, especially regarding economic policy. Initial indications appear to suggest a more protectionist
The withdrawal of the US from the Trans-Pacific Partnership trade agreement is probably the clearest manifestation of this.
The prospects of further volatility in the global trade system will be bad news for our economy, dependent as we are on capital inflows to balance our national accounts. It is unclear – though unlikely – whether South Africa would be directly hit by any protectionist measures, but the impact of diminished trade across the world would place greater strain on our prospects.
However, since South Africa’s economic relationships with
The implications for the property industry are ambivalent. The possibility of another slowdown will have a particular impact on the less affluent parts of the market. After the stresses that have defined the past few years, this would be doubly unwelcome.
On the other hand, a well-chosen property investment is a great hedge against
Ultimately, property agents and buyers need to remain watchful but optimistic. Prudent planning for the long-term is important – exercising patience through the tough times being a central element of success.
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