Ntando Thukwana

South African business sentiment weakened in the second quarter as consumers faced fresh pressures from the Iran war that’s clouded the outlook for inflation and interest rates.

South African central bank Governor Lesetja Kganyago promised that officials will lower the inflation rate back to its 3% target despite headwinds from the Iran war.

South Africa posted a third consecutive primary budget surplus, underscoring the government’s commitment to repairing state finances.

On a thoroughfare that usually throbs with music, shouted bargains and the bustle of downtown Johannesburg, the metal shutters on the shops are closed.

Fitch Ratings raised South Africa’s credit rating, citing the nation’s progress in tightening finances.

Foreigners have come under attack, been warned to leave

GDP beats forecasts despite war hit Grew 0.5% in the three months through March, compared with growth of 0.4% in the prior quarter.

South Africa’s economy expanded slightly more than expected in the first quarter despite early headwinds from the Iran war, but the numbers masked underlying weakness in domestic demand.

South Africa’s central bank suggested another interest-rate increase could be warranted this year because of the fallout from the Iran war, while highlighting risks the conflict poses to financial stability.

South Africa posted its largest current-account surplus in four years in the first quarter as the value of gold exports surged and imports dropped.