Citadel expects South Africa’s economic growth to come in below 1% this year, while Anchor Capital forecasts growth of 1.1% in 2026 and 1.4% in 2027.
South Africa’s stronger-than-expected economic growth at the start of the year may already be facing a significant headwind, with new data suggesting that higher fuel costs are beginning to filter through the economy.
According to Kruger, who compiles the PayInc Economic Index, petrol and diesel prices had risen cumulatively by about R8 a litre and R10 a litre respectively by early June.
Kruger cited Bureau for Economic Research estimates showing that the higher fuel prices could add approximately R45 billion in costs to the economy during the second quarter.
“The likelihood that businesses can fully absorb these increases is low, raising the prospect of broader inflationary pressures across the economy,” she said.
