BER Research Notes
no2...The SA consumer landscape
Last updated: Aug 14 2017 12:16PM
We provide a broad overview of the consumer, providing information on demographic trends, consumer income, the consumer balance sheet and consumer spending on an aggregate level using population data and macroeconomic indicators. The main aim is to present
read moreWe provide a broad overview of the consumer, providing information on demographic trends, consumer income, the consumer balance sheet and consumer spending on an aggregate level using population data and macroeconomic indicators. The main aim is to present consumer-facing businesses with a detailed overview of the consumer landscape, including current conditions and expected future trends, in order to better position themselves within the broader consumer environment.
no1...Positive Peer Pressure Assisting the Rand?
Last updated: Jul 3 2017 3:55PM
This research note is intended to place the strong performance of the South African rand versus the US dollar over the past two years into global context. This recent appreciation came despite the local economy being plagued by political uncertainty and low
read moreThis research note is intended to place the strong performance of the South African rand versus the US dollar over the past two years into global context. This recent appreciation came despite the local economy being plagued by political uncertainty and low growth, speculation of state capture of key institutions and was characterised by the unceremonious firing of two highly regarded finance ministers.
no3...South Africa’s evolving export profile: explaining the rise of Sub-Saharan Africa trade
Last updated: Dec 12 2016 11:23PM
South Africa’s merchandise export trade profile has changed noticeably in the last 15 years. Of particular significance is that, largely due to improved data capturing, Sub-Saharan Africa became SA’s largest export market in 2010, surpassing the Eurozone and
read moreSouth Africa’s merchandise export trade profile has changed noticeably in the last 15 years. Of particular significance is that, largely due to improved data capturing, Sub-Saharan Africa became SA’s largest export market in 2010, surpassing the Eurozone and East Asia (including China).
no2...The macroeconomic impact of raising the Value Added Tax (VAT) rate in South Africa
Last updated: Jun 20 2016 7:45AM
This note outlines the results of a BER model exercise to simulate the macroeconomic implications of a 1 percentage point increase in the SA VAT rate.
no1...Salient features of SA’s post-2009 business cycle
Last updated: May 13 2016 10:56AM
The objective of the current research note is to analyse the key features of the post-2009 South African (SA) business cycle, i.e. both the expansion phase from 2009 to 2013 and the ensuing economic downturn to date. The analysis is conducted in the context
read moreThe objective of the current research note is to analyse the key features of the post-2009 South African (SA) business cycle, i.e. both the expansion phase from 2009 to 2013 and the ensuing economic downturn to date. The analysis is conducted in the context of SA’s historic business cycles from the mid-1970s.
no4...Household credit and debt, how leveraged are consumers?
Last updated: Dec 11 2015 8:51AM
Growth in credit extension to households increased somewhat this year and households have become increasingly vulnerable to adverse economic shocks. While most household leverage ratios have only increased slightly (so far) this year, the household debt to
read moreGrowth in credit extension to households increased somewhat this year and households have become increasingly vulnerable to adverse economic shocks. While most household leverage ratios have only increased slightly (so far) this year, the household debt to disposable income ratio remains high. Moreover, the debt-service cost to disposable income ratio has started to rise notably. Hence, households are more vulnerable in terms of the affordability of credit. This is especially relevant with further interest rate hikes in 2016 firmly on the cards. Successive interest rate increases, on a relatively high level of debt, can lead to a sharp acceleration in the debt-service cost ratio. This places downside risk on our consumption expenditure forecast.
no3...Recent trends and the future of manufacturing in South Africa
Last updated: Dec 9 2015 1:32PM
The manufacturing sector’s contribution to the South Africa economy has been declining for a number of years. Against this backdrop, we asked industry expert Henk Langenhoven to explore ‘the future of manufacturing in SA’, and in particular the prospects for
read moreThe manufacturing sector’s contribution to the South Africa economy has been declining for a number of years. Against this backdrop, we asked industry expert Henk Langenhoven to explore ‘the future of manufacturing in SA’, and in particular the prospects for the metals and engineering sector.
no2...What is the potential growth rate of the...
Last updated: Jul 27 2015 10:20AM
What is the potential growth rate of the South African economy? Given the various constraints on growth, including a dysfunctional school system, insufficient electricity provision, infrastructure backlogs and policy uncertainty, to name but a few, what is a
read moreWhat is the potential growth rate of the South African economy? Given the various constraints on growth, including a dysfunctional school system, insufficient electricity provision, infrastructure backlogs and policy uncertainty, to name but a few, what is a realistically attainable rate of growth? In this research note, various methodologies are employed in estimating the potential growth rate of the South African economy. Results show that the potential growth rate has dropped significantly after the Global Financial Crisis. Large-scale structural reforms in both the product and labour markets are required in order to lift the economy to a higher, yet sustainable, growth path.
no1...A brief history of the US interest rate...
Last updated: May 14 2015 4:10PM
The objective of this note is to obtain a better understanding of the impacts the SA economy may experience once interest rates in the US begin to rise. It is generally expected that US interest rates will begin to rise in the foreseeable future, not least by
read moreThe objective of this note is to obtain a better understanding of the impacts the SA economy may experience once interest rates in the US begin to rise. It is generally expected that US interest rates will begin to rise in the foreseeable future, not least by the US FOMC.
no5...Platinum mining’s contribution to the SA...
Last updated: Nov 27 2014 12:32PM
The South African platinum mining industry has lately been in the spotlight for all the wrong reasons. Despite the significant role and contribution of the platinum sector to the South African economy, the industry is currently in a challenging position due
read moreThe South African platinum mining industry has lately been in the spotlight for all the wrong reasons. Despite the significant role and contribution of the platinum sector to the South African economy, the industry is currently in a challenging position due to unprecedented labour disruptions, depressed global demand and a declining platinum price. Increasing production costs (mainly due to wages and electricity costs) are further exacerbating the situation. Platinum mining and related activities are an integral part of the domestic industrial landscape and, as such, the sector should be fully understood to better comprehend the potential impacts of a slowdown in the platinum group metals (PGM) sector on the broader economy. An economic impact analysis (EIA) allows one to assess the platinum industry’s total contribution to the South African economy, as opposed to simply the impact on mining production and exports.