In 2024 the world economy grew by an estimated 2.8%, in line with its long-term average, and at the beginning of this year was forecast to expand by 2.7% in 2025. Unfortunately, during the past six months the global economy has experienced substantial and sustained headwinds relating mainly to US trade policy uncertainty. Consequently, global growth has been revised down to 2.2% in 2025 with most economies, especially the US, decelerating relative to last year.

The opportunities that lie in SA’s freight rail network are the most attractive in sub-Saharan Africa, but they will only be unlocked with more business-friendly policies in place, James Holley, CEO of independent railway operator Traxtion, told STANLIB Asset Management’s 2025 InPerspective Roadshow.

The South African economic climate has seen significant developments this week. On Wednesday, 2 April, the ANC and smaller parties in the National Assembly, excluding the DA, passed the controversial 2025 National Budget. On 3 April, US President Donald Trump announced a steep hike in US import tariffs, impacting numerous global trading partners, including South Africa, triggering negative market reactions. In two separate podcasts, STANLIB’s Chief Economist, Kevin Lings, unravels the implications of these events for local and global economic growth and investor confidence.

The South African Minister of Finance, Enoch Godongwana, presented the third iteration of his fourth National Budget on Wednesday, 21 May 2025. This followed the withdrawal of the second attempt amid ongoing disagreement within the Government of National Unity (GNU) cabinet on the amended proposed increase of the VAT rate by one percentage point over two years.