Impending drop in economic growth, warns South African research
A working paper published by the South African Reserve Bank on August 30 says economic activity is likely to slow over the coming year.
The authors, Nombulelo Gumata, Nir Klein and Eliphas Ndou, present a financial conditions index that studies changes in financial conditions over time and predicts the impact of these on GDP.
The index deems financial conditions to have recovered from the financial crisis strongly in 2009 and 2010, but finds that they have tightened in the past few months.
The
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