Page 11 - RMI Annual Report 2022
P. 11
10
Inflation: A little ray of light Salary and wage increases.
Despite the significant increase in
fuel prices, South Africa’s inflation %
seems to be more under control
than in the rest of the world. The 16 12.8
Reserve Bank expects inflation to 11.9
average 5.9% in 2022, reducing to actual expected
5.0% in 2023 and 4.7% in 2024. 13.9
14
However, economic growth
outlook remains anything but rosy. 12
The economy is forecast to expand
by 1.9% in both 2023 and 2024. 10 8.5
At these rates, growth remains 5.8
well below potential, impacted by 8 7.2 5.8
loadshedding, infrastructure and 7.7
policy constraints. 6 7.3
6.7
7.0
5.8
6.4
4.9
4.1
4
2 0.9
0
2007 2009 2011 2013 2015 2017 2019 2021 2023
The cost of employment remains a Q2 2022 Q1 2022
lingering concern, with the Bureau
for Economic Research predicting frameworks, and protecting central bank independence can
that salary and wage increases effectively anchor inflation expectations and reduce the amount
during the year will peak at an of policy tightening required to achieve the desired effects on
average of 5.8%. inflation and activity.
Policy certainty is a critical necessity A time of unprecedented change in the automotive sector
for South Africa, particularly with The automotive sector is in the midst of unprecedented change,
regards to strategic issues where marked by the continued advancement of New Energy Vehicles
policy needs to be divorced from (NEV) and lower fuel emissions, a convergence of industries,
political influencers and based transforming supply chains, and rapidly changing customer
solely on economic realities. preferences geared towards more sustainable options. Over the
past two years, the South African automotive industry has worked
According to George Herman, on the NEV policy and has produced a green paper and a number
Director and Chief Investment of studies to assess feasibility.
Officer at Citadel, South Africa
requires a significant overhaul of According to the Q1 report for 2022 released by the National
the current inflexible labour laws, Association of Automobile Manufacturers of South Africa
realistic strategies for alternative (naamsa), the South African traditional hybrid, plug-in hybrid, and
versus carbon-based energy, electric vehicle markets significantly increased in a predominantly
stable and reliable energy supplies, petrol and diesel market. In 2021, at a total of 896 NEV units,
and an end to the uncertainty sales increased by 176,5% compared to the previous year when
surrounding land ownership with only 324 NEV unit sales were recorded.
a definitive spectrum auction.
In 2021 electric vehicles surged by 136,9%, traditional hybrid
Ayhan Kose, Director of the World increased by 304,5%, while a slight decline was seen in the hybrid
Bank’s Prospects Group is of the market at 33,7% when compared to the previous year. As at
opinion that developing economies March 2022, traditional hybrid local production was recorded at
will have to balance the need to 1 110, total imports were reported at 301, with EVs at 112 units,
ensure fiscal sustainability with plug-in hybrids at 32 and traditional hybrid at 157.
the need to mitigate the effects
of overlapping crises on their
poorest citizens. According to
Kose, communicating monetary
policy decisions clearly, leveraging
credible monetary policy
Inflation: A little ray of light Salary and wage increases.
Despite the significant increase in
fuel prices, South Africa’s inflation %
seems to be more under control
than in the rest of the world. The 16 12.8
Reserve Bank expects inflation to 11.9
average 5.9% in 2022, reducing to actual expected
5.0% in 2023 and 4.7% in 2024. 13.9
14
However, economic growth
outlook remains anything but rosy. 12
The economy is forecast to expand
by 1.9% in both 2023 and 2024. 10 8.5
At these rates, growth remains 5.8
well below potential, impacted by 8 7.2 5.8
loadshedding, infrastructure and 7.7
policy constraints. 6 7.3
6.7
7.0
5.8
6.4
4.9
4.1
4
2 0.9
0
2007 2009 2011 2013 2015 2017 2019 2021 2023
The cost of employment remains a Q2 2022 Q1 2022
lingering concern, with the Bureau
for Economic Research predicting frameworks, and protecting central bank independence can
that salary and wage increases effectively anchor inflation expectations and reduce the amount
during the year will peak at an of policy tightening required to achieve the desired effects on
average of 5.8%. inflation and activity.
Policy certainty is a critical necessity A time of unprecedented change in the automotive sector
for South Africa, particularly with The automotive sector is in the midst of unprecedented change,
regards to strategic issues where marked by the continued advancement of New Energy Vehicles
policy needs to be divorced from (NEV) and lower fuel emissions, a convergence of industries,
political influencers and based transforming supply chains, and rapidly changing customer
solely on economic realities. preferences geared towards more sustainable options. Over the
past two years, the South African automotive industry has worked
According to George Herman, on the NEV policy and has produced a green paper and a number
Director and Chief Investment of studies to assess feasibility.
Officer at Citadel, South Africa
requires a significant overhaul of According to the Q1 report for 2022 released by the National
the current inflexible labour laws, Association of Automobile Manufacturers of South Africa
realistic strategies for alternative (naamsa), the South African traditional hybrid, plug-in hybrid, and
versus carbon-based energy, electric vehicle markets significantly increased in a predominantly
stable and reliable energy supplies, petrol and diesel market. In 2021, at a total of 896 NEV units,
and an end to the uncertainty sales increased by 176,5% compared to the previous year when
surrounding land ownership with only 324 NEV unit sales were recorded.
a definitive spectrum auction.
In 2021 electric vehicles surged by 136,9%, traditional hybrid
Ayhan Kose, Director of the World increased by 304,5%, while a slight decline was seen in the hybrid
Bank’s Prospects Group is of the market at 33,7% when compared to the previous year. As at
opinion that developing economies March 2022, traditional hybrid local production was recorded at
will have to balance the need to 1 110, total imports were reported at 301, with EVs at 112 units,
ensure fiscal sustainability with plug-in hybrids at 32 and traditional hybrid at 157.
the need to mitigate the effects
of overlapping crises on their
poorest citizens. According to
Kose, communicating monetary
policy decisions clearly, leveraging
credible monetary policy
