No end in sight for South Africa’s wage problems: economists
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The National Treasury, ratings agencies and economists have all flagged escalating wage demands as one of the key risks facing South Africa right now.
Last week saw several developments on the wage front, with many of the demands well in excess of expected inflation, said economists from the Bureau for Economic Research (BER) in a research note on Monday (24 May).
The group outlined some of the key demands from labour unions as follows:
Mining – In the gold mining sector, the National Union of Mineworkers (NUM), among other demands, wants a 15% increase in salaries.
As South Africa finally begins its mass Covid-19 vaccination programme, the country’s economic recovery faces a double-blow due to rising Covid-19 cases and the…
AfricaS.Africa s c.bank to keep rates at record low 3.5% on May 20
Vuyani Ndaba
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South Africa s Reserve Bank will keep its repo rate unchanged next week as inflation remains within the bank s comfort range despite showing signs of quickening in recent months, a Reuters poll found on Thursday.
All 25 economists surveyed this week said the central bank would keep its repo rate at a record low 3.5% at its May 20 meeting.
Elna Moolman, an economist at Standard Bank, said while global inflation forecasts were drifting higher, domestic inflation forecasts were comfortably inside the SARB s target range.
South Africa tries to keep inflation between 3%-6%.
Buoyant global trade and record-high commodity prices continue to underpin SA’s healthy trade balances. But the government cannot rely on this as its sole source of economic dynamism.