Loading...
See More

Sarb sees lower economic growth

Oct 30 2012 19:32 Sapa

Related Articles

Unsecured lending surges to R381bn

SA lenders bank healthy profits

Sarb leading indicator recovers

Marcus warns of vicious cycle of strikes

Reserve Bank indicator improves in July

SA should adjust policy stance - Marcus

 
Pretoria - A report issued by the SA Reserve Bank on Tuesday sees economic growth slowing.

"Domestic economic activity is expected to moderate from the second to the third quarter of 2012," the bank said in its Monetary Policy Review for October.

The review is released twice a year and sets out the Reserve Bank's thinking on economic growth and inflation.

South Africa's real gross domestic product (GDP), the sum total of all goods and services produced in the economy during the period, rose in the second quarter, driven by the primary sector which includes mining and agriculture.

However, if this sector was excluded, growth in the rest of the economy slowed from 3.9% in the first quarter of 2012 to 1.6% in the second quarter.

The construction sector picked up, but electricity, gas and water, and manufacturing, declined. Trade and finance and business services decelerated.

Inflation is expected to remain within the bank's target range of between four and six percent.

Headline CPI was forecast at an average of 5.6% in 2012, slowing to 5.2% and 5% in 2013 and 2014 respectively.

Core inflation, stripping out food, petrol and electricity prices, was expected to peak at 4.9% in the final quarter of this year, compared to the previous forecast peak of 5.4%.

It was expected to average 4.6% in both 2013 and 2014.

Risks to the inflation forecast were viewed as more or less balanced.

Higher petrol and anticipated higher food prices were being offset by demand pressure and excess capacity. A depreciating rand could, however, increase inflationary pressures, the central bank said.
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

17 photo illusions that look so real

What if they aren’t illusions? What if that dog really has a human foot – then what?

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
Check out the speed of this robo-cheetah!
New GIF keyboard on iOS for added fun!
Puppy goes crazy over iPad game

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...