Although South Africa has some social problems to tend to, the economy seems to be in good shape and the iShares MSCI South Africa (EZA) exchange traded fund (ETF) is feeling the upward trend of the economy. South Africa is rich in precious metals and commodities, and more competition in business and politics could lead to an even healthier economy and society.
Carl Delfeld of ETFXRAY.com reviews the economic situation, with a growth rate of 4.5%; inflation within target; a balanced budget; reduced level of external debt and a build up of foreign exchange reserves. This healthy economy will provide a good basis for next year’s presidential elections and help overcome social issues holding back progress. Some of the social issues include over-regulation; poor infrastructure; high unemployment and unequal income distribution.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.