Short-term Insurance Industry Results
A look back at 2017 indicates that South Africa's gross domestic product (GDP) growth amounted to 1.3% beating the forecasted 1% growth. This is an improvement on 2016 where GDP growth only reached 0.3%. Much of the 2017 growth can be attributed to its fourth quarter, which saw strong growth after the decision by the Monetary Policy Committee to cut the repo rate by 25 basis points. This provided much needed stimulus to the economy. As expected, the low GDP growth and tough trading conditions are reflected in the 2017 financial results reported by the short-term insurance industry.
Growth in the short-term insurance industry is hard to come by and it is being hindered by these unfavourable macroeconomic factors, political instability and increasing unemployment rates.
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