The South African (SA) Rand traded flat early on Tuesday ahead of the release of the third-quarter Gross Domestic Product (GDP) data, which is expected to show softer economic growth.
The Rand traded at 17.0950 against the Dollar , a whisker away from Monday’s close.
Statistics S will publish the GDP data.
Economists polled by Reuters have forecast a 0.5% quarter-on-quarter GDP growth, below September quarter’s better-than expected 0.8% rise.
Nedbank economists projected a modest 0.4% expansion, saying that the loss in momentum have spread across most sectors tracked by the statistics agency except for finance and transport industries.
“Despite ongoing structural reforms, operating conditions remain challenging, and production costs are still high,” they said in a note.
Higher United States tariff barriers will weigh on output, particularly given SA’s elevated cost structures, underlying inefficiencies and significant infrastructure constraints, the note added.
SA’s benchmark 2035 government bond was marginally stronger in early deals as the yield fell 1.5 basis points to 8.49%.
–Reuters–
