Policy uncertainty in South Africa has reached a new peak in the second quarter, driven largely by the escalating conflict in the Middle East.
A report from North-West University (NWU) indicates that the global upheaval is significantly dampening investment and growth prospects, creating a volatile backdrop for domestic economic planning.
The findings underscore the fragility of the current economic environment, where external geopolitical shocks are directly translating into domestic policy risks.
Investors are increasingly wary of the unpredictable nature of global supply chains and energy markets, which are being disrupted by the ongoing tensions in the region.
This external pressure is compounding existing domestic challenges, making it difficult for policymakers to maintain a stable growth trajectory.
The timing of the report is critical, as it coincides with heightened sensitivity around monetary policy.