SA to maintain positive growth path

Pretoria - After three consecutive quarters of improvement, gross domesticproduct (GDP) growth is expected to sustain its stronger performance in 2010 and 2011, the SA Reserve Bank (Sarb) said on Thursday in its May 2010 Quarterly Bulletin.

According to the Sarb's latest quarterly projections, real output was expected to grow at annual average rates of 2.7% and 3.6% in 2010 and 2011 respectively.

Quarter-on-quarter annualised real GDP growth was expected to be 3.7% in the first quarter of 2010 and 3.2% in the second quarter, the Sarb said.

However, the crisis in the euro area - which is an important trading partner for SA - was a risk to growth. Significant risks and uncertainties continued to threaten global financial markets.

"Domestic economic prospects are strongly influenced by the global economic outlook. Concerns regarding the solvency of a number of countries in the euro area have threatened to transform the initial banking crisis into a sovereign debt crisis, which could have systemic implications for the global economy," the Sarb added.

 - Sapa