Emerging Markets In-Focus: Kenya & South Africa
Kenya's economic growth slowed to 4.9% in Q1 from 5.5% a year earlier as the pandemic restrictions began to take affect | GDP growth is in line with market expectations so the exchange rate suffered only a modest fall as a result | Meanwhile, locusts continue to ravage parts of the north with swarms attacking crops which supply food for 20 million people in the region
South Africa’s economy was pushed deeper into contraction by 2% in the first quarter of this year, even before the full force of the coronavirus pandemic hit |The data is still better than market expectations of a 3.7% drop however the rand fell to a 3-week low | The National Treasury still forecasts GDP to contract by 7.2% in 2020 while the COVID-19 concerns of a second-wave gather pace as government figures showed both cases and deaths continuing to rise
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None of the information in this article is, nor should be construed as financial advice. All foreign exchange transactions involve risk and you should always seek your own independent financial advice before entering into any foreign exchange transaction.