Local economy continues to recover from COVID-19 pandemic
Over the next couple of years, cars in South Africa will become more affordable to the public as the local and global economies continue to recover from the COVID-19 pandemic. This was stated by Gana Msibi, CEO of WesBank, following the successful South African Car Week held at the Kyalami International Convention Centre the previous day.
"Since our inflation forecast calls for two interest rate hikes over the next six months, we believe that the local economy will start to improve with the reduction in the repo rate and that the economy will normalise in 2024," said the expert.
He also expects shortages of certain automotive parts, such as semiconductors, to improve in the medium term, as well as lower transportation costs. These developments will help the global economy recover by reducing operating costs.
An important development will be the reopening of production facilities in China at full capacity. This is a major factor in increasing the availability of spare parts for the entire global automotive industry. This is reported by The South African.Photo: IStock