Good economic news is that the consumer price index (CPI) (headline inflation) for July has again shown a welcome declining tendency, reaching 4,7% from 5,4% in June.

Prof Raymond Parsons, economist from the North-West University (NWU), says this is not only a two-year low for the CPI but is also much better than market expectations.

“Core inflation further moderated to a ten-month low of 4,7% from 5,0% in June. The omens for the inflation outlook in South Africa look promising.”

Young entrepreneurs from more than 70 small and medium-sized enterprises (SMEs) benefitted from a SME Business Finance Clinic hosted by the North-West University (NWU).

The Small Business Advisory Bureau (SBAB) of the NWU’s Business School, in collaboration with the Small Enterprise Development Agency (SEDA), recently hosted an SME Business Finance Clinic to empower young entrepreneurs and youth-owned cooperatives.

The primary goal of the clinic was to empower these young entrepreneurs by providing them with essential insights into SME financing and development support.

Hosted from 24 to 28 July at The Roots Lifestyle Centre in Potchefstroom, the MBA Winter Study School of the North-West University (NWU) Business School proved to be an enriching and transformative experience for all involved. The week kicked off with an array of insightful guest speakers, leaving the attendees both inspired and enlightened.

The Nedbank Capital Expenditure Project Listing, which shows a dramatic decline in fixed investment activity in the first half of 2023, flashes a strong red light about future investment and growth trends in the South African economy.

This is as persistent power outages, rising interest rates and cost pressures weigh on profitability and erode business confidence.

As was widely anticipated, the Monetary Policy Committee (MPC) decided by a 3:2 majority to keep interest rates on hold for now, instead of opting for a further increase of 25 basis points.

In commenting on the MPC’s decision on 20 July, Prof Raymond Parsons, economist from the Business School at the North-West University (NWU), says it was the right call by the MPC, given the latest global and domestic economic cross-currents, as well as the cumulative impact of previous rate hikes on the economy.

During the fourth Pitso for 2023, Prof Raymond Parsons shared the Policy Uncertainty Index of the NWU Business School for the second quarter, which sparked an insightful discussion on its implications for the economy. The experts delved into the current standing of the index and explored potential remedies for prevailing crises that hinder much-needed economic growth.

“It is welcome but not unexpected good news that headline inflation (CPI) for May has continued to show a declining trend.”

In commenting on the CPI, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says that although food costs remain high, the overall downward trend in headline inflation is converging on earlier consensus expectations of South Africa getting closer to the goal of price stability in the months ahead.

He points out that core inflation remains stubborn for now, however.

According to Prof Raymond Parsons from the North-West University (NWU) Business School, the good news is that GDP growth of 0,4% in the first quarter of 2023, following on the revised -1,1% growth in the fourth quarter of 2022, has enabled the South African economy to avoid a technical recession – in other words, two consecutive quarters of negative growth.

The Monetary Policy Committee (MPC) unanimously decided on 25 May to increase interest rates by a further 50 basis points (bsp), citing risks to the inflation outlook as still being on the upside. The MPC’s major concerns continue to revolve around the possible second-round effects of higher headline inflation and exchange rate risks.

The North-West University (NWU) Business School recently received its accreditation from the Association of African Business Schools (AABS). The NWU Business School was represented at the 2023 AABS Connect Conference, hosted by the Ghana Institute of Management and Public Administration (GIMPA) in Accra, by the senior manager for Accreditation and Quality, Dr Lungile Ntsizwane.