Global Trade Tensions and Potential VAT Hike Pose Risks to South Africa’s Economic Stability
- Lesetja Kganyago warned that global trade tensions could undermine South Africa's inflation stability.
- The G20 presidency of South Africa is overshadowed by the potential for a global trade war.
- Japan's finance minister withdrew from the G20 meeting to focus on budget issues.
The ongoing global trade tensions and the uncertainty surrounding fiscal policies, such as the proposed VAT hike, pose significant risks to South Africa's economic stability. It is crucial for policymakers to navigate these challenges carefully to avoid exacerbating inflation and undermining consumer confidence.
