The biggest risks to South Africa right now

the biggest risks to south africa right now

Sumary of The biggest risks to South Africa right now:

  • The South African Reserve Bank (SARB) has warned that a number of issues could impact the country’s financial stability over the medium term, including another Covid-19 flare up and increasing government debt.
  • The issues form part of a risk framework included in the central bank’s latest financial stability review, which was published on Wednesday (24 November).
  • The SARB’s risk and vulnerability matrix (RVM) captures the primary risks to financial stability over a medium-term horizon.
  • The colour of the block represents the vulnerability of the financial system to the risk after taking mitigating factors into consideration.
  • Lower vulnerability risks are ones where the financial system is relatively well placed to absorb a shock without a broader spillover of distress across the system.
  • Higher vulnerability risks are ones that are more likely to lead to financial instability if no further mitigating actions are taken.
  • Covid-19 and vaccinations The impact of Covid-19 and the measures taken to contain it have exacerbated pre-existing economic and financial vulnerabilities in South Africa, the SARB said.
  • While vaccination rates in South Africa are slowly increasing, the global experience with Covid -19 suggests that further waves of infection may occur even when a large share of the population is vaccinated, it said.

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