South Africa

Rising demand for both private and commercial vehicles should put South Africa’s automotive industry on course to post full-year growth, with a recent rally helping to compensate for flat sales at the beginning of 2014.

A slower-than-expected rollout of major state-backed capital works look likely to weigh on the performance of South Africa’s construction sector up to end-June, with first-half-year results expected to be comparatively modest.

After a challenging few years, South Africa’s tourism sector is bouncing back, benefitting from the country’s affordability as a destination and its position as a business centre.

After two years of strong growth, the residential market in South Africa is set to lead global housing price increases by some estimates, although the rise in property values is expected to be slower than in previous years.

The Johannesburg Stock Exchange (JSE) enjoyed a good year in 2013, with its growth far outpacing that of the overall South African economy. However, with capital flows to emerging markets exhibiting some volatility in recent weeks, and domestic challenges such as continued labour disputes a possibility, 2014 may see more modest performance, although potential IPOs may give it a welcome nudge.

With slow but steady growth in 2013, South Africa saw comparatively reasonable performance last year, although there remains a sense that the resource-rich country is operating below its considerable potential.