Feedback on the Second Quarter 2024
LOCALLY, in general …
The National Election dominated the news. The resultant more centrist coalition (Government of National Unity – GNU) saw a rally in the Rand and a surge in domestic equities.
The economic outlook for SA has improved and the GNU has an opportunity to raise business and consumer confidence from an extremely low base.
Two-Pot System That Became the Three Component System
Latest Update: Proposed implementation date 1 September 2024.
The rationale behind the legislation is to empower more South Africans to preserve their retirement savings when changing or leaving a job, while also allowing people to access their savings component if they experience financial hardship.
No Major Tax Hikes … Budget 2024
Finance Minister Enoch Godongwana did not announce any major tax increases.
Taxation:
- No major changes occurred, VAT and income taxes were not hiked.
- No increase in the fuel levy and Road Accident Fund Levy.
- There was the normal rise in taxes for certain types of alcohol and tobacco products.
The two-pot system for retirement funds to launch in September 2024 (click here to see article)
Government reduced it real GDP growth forecast for 2023 to 0.65%.
2024 growth estimates increased to 1.3% from 1%.
Large US Tech Shares Drove Global Equity Returns in 2023
Source: PSG Asset Management
Asset Class Returns 2022 & 2023
Source: PSG Asset Management
