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May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 27 2012 11:49
The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - The monetary easing by the South
African Reserve Bank which saw it cut rates by a further 50 basis points
last week is expected to steer the country's economy toward recovery in the
second half of this year, Moody's Economy.com said on Friday.
The analysts noted in their weekly commentary that second quarter
national accounts data showed South Africa's economy contracted for the
third consecutive quarter while GDP retrenched 0.8% q/q, following a 1.7%
drop in the first stanza.
But they pointed out that if there was a silver lining in the national
accounts, it was an easing in the pace of contraction from the first three
months of the year.
"Further, South Africa's construction industry expanded at a robust pace
and managed to provide the largest contribution to the economy, thanks to
strong government construction spending in preparation for the Football
World Cup in 2010. Government services also made a positive contribution to
GDP, whilst modest improvement in monthly exports helped lift mining and
quarrying output," they added.
Another positive development, according to Moody's Economy.com, is
moderating inflation pressures, which have given the South African Reserve
Bank enough room to slash interest rates by 500 basis points since December.
"This monetary stimulus will help steer the economy toward recovery in
the second half of 2009," the analysts ventured.
But they added: "Nonetheless, with manufacturing, finance and trade
still in decline, the pace and nature of the recovery remain uncertain, as
these industries account for nearly half of GDP. With joblessness on the
rise, domestic demand will likely be subdued in the second half. Ongoing
labour disputes and frequent strikes also add downside risk to the outlook.
"The path back to self-sustaining growth will be long and require deft
guidance by policymakers. However, deteriorating public finances have
limited the government's ability to mount an aggressive fiscal stimulus
beyond the current, massive R787bn public infrastructure program over
the next three years."
- I-Net Bridge