Latest news with #CIB
IOL News
10 hours ago
- Business
- IOL News
South Africa's GDP growth forecast halved by Absa CIB to 1% amid global uncertainties
Absa Corporate and Investment Banking (CIB) said revised their GDP growth for South Africa from 2.1% in Q1 2025 to 1% for 2025 Image: Pixabay Absa Corporate and Investment Banking (CIB) has slashed its 2025 GDP growth forecast for South Africa by half, from 2.1% to 1.0%, due to heightened global uncertainties. The updated outlook was presented in the South Africa Q2 2025 Quarterly Perspectives report on Wednesday. Miyelani Maluleke, a senior economist at Absa CIB, said in Absa's Q1 Quarterly Perspectives, that they had forecast that real GDP growth could improve to 2.1% in 2025 supported by a combination of improved domestic infrastructure, household finances, higher levels of business confidence, recovery from drought conditions, and broadly stable global growth. However, this forecast has now changed. "While some of these factors seem likely to remain supportive, others have deteriorated. We still expect real GDP growth to improve from 2024, but we revise our forecast to 1.0% for 2025. We also trim our forecast for 2026 to 1.4% from 2.1% previously,' he said. Absa CIB forecast overall investment growth of 1.9% in 2025 and 3.2% in 2026. "The degree of uncertainty around these forecasts is much higher than usual, mainly due to the external environment. The progression of the negotiations on global trade will be critical for the strength of the world economy, and as a small open economy, South Africa's own prospects are strongly linked to this,' Maluleke said. He said a more difficult and uncertain global environment is a big challenge for South Africa. A sharp escalation in trade tensions is set to dampen global growth as tariffs disrupt trade, and increased policy uncertainty adversely affects business sentiment and investment decisions. For South Africa, less favourable trade arrangements with the US will hit various sectors of the economy more directly, while potentially weaker global growth will weigh on broader export performance, he further said. Domestically, policy disagreements within the Government of National Unity (GNU) and a delayed 2025 Budget have raised concerns about the coalition's stability. Additionally, increased plant breakdowns at Eskom and moderate load shedding highlight ongoing electricity supply challenges. Despite these headwinds, low inflation offers some support. Headline CPI inflation fell to a near-five-year low of 2.7% in March, bolstered by a 13% drop in oil prices since early April. Absa CIB projects inflation to remain below the 4.5% target midpoint until Q2 2026, averaging 3.3% in 2025 and 4.4% in 2026. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Absa CIB expects the South African Reserve Bank to cut interest rates further, with a 25 basis-point reduction anticipated in May and another in July, following a March decision to hold the repo rate at 7.50%. Lower rates should ease debt service costs and support consumer spending, which is projected to grow by 1.7% in 2025. Despite early Q1 labour market weakness, with 291 000 net job losses, consumer incomes are improving, and credit health is recovering. Economic sluggishness and fiscal pressures may sharpen the focus on reforms. Progress continues in logistics, electricity, and local government service delivery, with President Ramaphosa launching Phase II of Operation Vulindlela to deepen reforms in network industries, municipalities, spatial integration, and government digitalization. However, the global economic outlook has worsened since Absa's last report, particularly after the US imposed a 10% universal tariff on exports and higher reciprocal tariffs on 60 countries, including South Africa, starting April 2. These measures cloud the global trade environment, making it challenging to predict impacts on trade and growth. BUSINESS REPORT Visit:
Axios
16 hours ago
- Business
- Axios
Indy's Signia hotel, convention center expansion reach new heights
Construction crews are ahead of schedule on downtown's Indiana Convention Center expansion, the state's first Signia by Hilton hotel and another Georgia Street remix. Why it matters: Even before completion, city leaders say, the development has helped the region's surging hospitality and tourism industry secure new events while providing momentum to a post-pandemic initiative aimed at strengthening Indianapolis' urban core. The latest: The elevator shaft had been completed past the 25th floor of the 38-story Signia by Hilton, and CIB executive director Andy Mallon tells Axios the glass panels wrapping what will become Indy's tallest hotel should reach the 18th floor this week. Meanwhile, crews have started work on the second floor of the ICC expansion, crafting the space that will become the new Grand Ballroom. The plan to transform the west block of Georgia Street into a park-like setting and permanently close it to vehicular traffic from Illinois to Capitol is making progress and should be open in time for the NCAA Men's Final Four in April 2026. What they're saying:"It's almost $1.5 billion in investment in new projects just in that three blocks of Georgia Street alone," Mallon said. "It'll add 800 rooms of inventory to downtown, which is absolutely necessary." Mallon added the extra space will allow Indianapolis to host what he calls two "citywides," as in citywide conventions or events that sell out simultaneously downtown. State of play: Mallon said with the support of agreeable weather, crews are firmly en route to an anticipated completion date of late 2026 for the exterior hotel and convention center work. "The last floor of concrete will be poured probably in September, roof on in September or October. … And then dried in, we'll have everything sort of weathertight hopefully around Christmas," he said. Yes, but: The price tag on the roughly $500 million Signia has gone up. "The construction market has never been hotter in the state of Indiana," Mallon said. All the concurrent work in the region, including projects that share contractors and construction materials, means cost increases for those parts and labor. As a result, the CIB has invested an additional $70 million into the project to ensure it stays on track. Reality check: The Hogsett administration took over the funding of the hotel in May 2023 when the original developer, Kite Realty, was unable to secure private financing. Mallon said most of the convention expansion is paid for through tax increment financing funds, while the cost of the hotel itself is funded through hotel revenue bonds. Zoom in: The project also furthers the downtown resiliency strategy launched by Mayor Joe Hogsett's administration in 2022. The idea was to build a sturdier downtown on the other side of the pandemic through a combination of housing, recreational public space, economic development and connected infrastructure investments. Zoom out: Department of Metropolitan Development director Megan Vukusich said this development — along with projects like the Elanco World Animal Health HQ and the Cole Motor Campus — represents the heart of that effort. "It's really exciting to be now in 2025 and seeing the results of those efforts that began a few years ago. The Signia is a really good physical representation of the progress that's being made."
Zawya
17 hours ago
- Business
- Zawya
Egypt: EFG Hermes advises on EFG Corp-Solutions' $52mln bond issuance
Arab Finance: EFG Hermes, an investment bank in the Middle East and North Africa (MENA) and a subsidiary of EFG Holding, has concluded advisory on an EGP 2.65 billion corporate bond issuance for EFG Corp-Solutions, as per an emailed press release. A subsidiary of EFG Finance, EFG Corp-Solutions is a company specializing in leasing and factoring in Egypt. This marks its fourth bond issuance. The bond, issued with a credit rating of A- from Middle East Ratings and Investor Services (MERIS), has a 13-month tenor. For this issuance, EFG Hermes acted as the financial advisor, transaction manager, bookrunner, underwriter, and arranger. Commercial International Bank (CIB) was the placement and subscription bank, while Dreny & Partners provided legal advisory services. KPMG served as the auditor. EFG Hermes continues its involvement in debt issuances in the region, having recently advised on several transactions, including Bedaya's sixth securitization issuance valued at EGP 1.64 billion and Valu's 15th securitized bond issuance worth EGP 1.036 billion. Other advisory work includes Bedaya's fifth securitization at EGP 1.78 billion, Sylndr's EGP 370 million working capital facility, and a short-term note issuance of EGP 433 million for EFG Corp-Solutions. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
17 hours ago
- Business
- Zawya
Egypt: USD rates stay below EGP 50-mark on Tuesday
Arab Finance: The exchange rate of the US dollar to Egyptian pound maintained its value under the EGP 50 mark on Tuesday, reaching EGP 49.76 for purchasing and EGP 49.86 for selling at Banque Misr at 2:05 PM. At the National Bank of Egypt (NBE), the US dollar recorded EGP 49.76 for buying and EGP 49.86 for selling at 2:14 pm. Meanwhile, the exchange rate hit EGP 49.75 for purchasing and EGP 49.85 for selling at the Commercial International Bank Egypt (CIB). © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
2 days ago
- Business
- Zawya
Egypt: USD/EGP exchange rates slightly down on Monday
Arab Finance: The exchange rate of the US dollar to Egyptian pound went down on Monday, hitting EGP 49.79 for buying and EGP 49.89 for selling at Banque Misr at 1:24 PM. The US dollar also recorded EGP 49.79 for buying and EGP 49.89 for selling at the National Bank of Egypt (NBE) at 1:32 pm. At the Commercial International Bank Egypt (CIB), the exchange rate hit EGP 49.79 for purchasing and EGP 49.89 for selling. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
