FFIRSTRAND, with subsidiaries including Wesbank, FNB and RMB, has reduced its 2023 gross domestic product growth forecast to a contraction of 0.1%, with the likelihood of further interest rate increases.
It said in a trading update yesterday, however, that its forecast earlier this year of a strong full year financial performance by the group, stands.
The banking group said that contrary to its initial expectations, the South African macroeconomic backdrop had weakened in the second six months of the year to June 30, 2023.
“Domestic economic activity has been particularly negatively impacted by higher levels of load shedding, sticky inflation and the steeper rise in interest rates than forecast at the beginning of the year,” the group said.
Markets had also reacted negatively to the government’s stance on…