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
In the News: The Rand
The Rand has been trading at its most sustained period trading below 18 USD/ZAR since April 2023.
- A pick-up in global risk appetite has seen the Rand recover against most major currencies and outperforming its emerging market peers.
- The main reason behind the change in sentiment has been signs of global inflation cooling down, increasing hopes that the end of the Central Bank tightening cycle really is now in sight.
Source: Currency Partners
Equity Performance …… January to June 2023
Despite high volatility, stubborn inflation, interest rate hikes and the war in Ukraine, the ALSI and MSCI (USD) grew by 5.9% and 13.9% respectively in the first half of 2023 (see graph below). This highlights the potential for growth in uncertain times, and the importance of staying invested in order to benefit from it.
Source: Bloomberg, Ninety One SA
Silicon Valley Bank (SVB) and Credit Suisse … A Perspective
The situation with Silicon Valley Bank and Credit Suisse has caused some concern. Please see a link to an article by Peter Conniff, Head Trader at Castlestone Asset Management for commentary (some of you are invested in Castlestone in your Offshore Funds).
Click on the link to open the article Silicon Valley Bank and Credit Suisse
Disclaimer: Castlestone cannot guarantee the content that is provided in the banking update.
