Emerging Markets Update: Kenya, South Africa & Zimbabwe
KENYA In September, Kenya’s private sector grew at the fastest pace since April 2018 with firms resuming operations as restrictions were eased across the country | However, the shilling remains under pressure with USDKES continuing to trade around the highs for 2020
SOUTH AFRICA Activity also increased in South Africa last month as pent up demand was released into the economy | The latest Markit PMI showed the private sector rising to 49.4 from 45.3 in August which shows a vast improvement though still below the 50 mark which separates growth and contraction | USDZAR has moved 1% higher as the positive sentiment of Trump’s quick release from hospital dissipates from emerging markets
Finance Minister Mthuli Ncube believes the economy will not be affected as severely as initially fears | Recent government forecasts expect the Zimbabwean economy to shrink by 4.5% this year as strikes by public workers and a shortage of drugs in hospitals added to the impacts of the coronavirus
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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.