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Cape Town - In February all sectors of the Western Cape economy other than construction showed growth for the third successive month.
The widespread growth ensured that the Sake24 and BoE Private Clients' Western Cape Barometer achieved double-digit growth in February for the second month running.
This index rose 12% to 115.4 index points, compared with the 102.7 level in February 2010.
This is the highest level since data-collection began, and close to the high levels at the beginning of 2007, when the global economy was doing well.
The strong figures are certainly being seen from all members of the Cape Chamber of Commerce, notes its president, Michael Bagraim. He says all companies are showing more positive performances and the region’s economy is leaving the recession behind.
Yes, said Bagraim, there is a very negative vibe in the construction industry, but it is hoped that this will turn positive in view of the big construction projects that the city recently announced – the major development planned between the Cape Town International Conference Centre and the Artscape in Cape Town.
He said apart from the Soccer World Cup, other recent major international events – such as the Argus cycle tour, the Jazz festival and the Absa Cape epic cycle tour – drew many tourists to the region.
Any barometer that grows more than 9% is very, very strong and this has been the case here for the past three months, said Economists.co.za’s Mike Schüssler, who compiled the barometer.
The fact that it is now 12% up told him that the region's economy is recovering strongly.
Schüssler also ascribed the strong rise to widespread growth – from the agricultural industry to government expenditure. The recovery has also been quite rapid.
But he was concerned about the impact of high electricity prices. At some stage interest rates will also start rising, while government’s strong spending cannot last.
He hoped that by then the construction industry will have recovered. This industry, which makes a 3.5% contribution to the economy, has contracted almost 13% compared with a year ago.
The stress index, which indicates how much pressure the economy and the consumer are experiencing, was down on a year ago. This is owing to the prime interest rate being 14% down from a year ago and inflation remaining low.
- Sake24
The widespread growth ensured that the Sake24 and BoE Private Clients' Western Cape Barometer achieved double-digit growth in February for the second month running.
This index rose 12% to 115.4 index points, compared with the 102.7 level in February 2010.
This is the highest level since data-collection began, and close to the high levels at the beginning of 2007, when the global economy was doing well.
The strong figures are certainly being seen from all members of the Cape Chamber of Commerce, notes its president, Michael Bagraim. He says all companies are showing more positive performances and the region’s economy is leaving the recession behind.
Yes, said Bagraim, there is a very negative vibe in the construction industry, but it is hoped that this will turn positive in view of the big construction projects that the city recently announced – the major development planned between the Cape Town International Conference Centre and the Artscape in Cape Town.
He said apart from the Soccer World Cup, other recent major international events – such as the Argus cycle tour, the Jazz festival and the Absa Cape epic cycle tour – drew many tourists to the region.
Any barometer that grows more than 9% is very, very strong and this has been the case here for the past three months, said Economists.co.za’s Mike Schüssler, who compiled the barometer.
The fact that it is now 12% up told him that the region's economy is recovering strongly.
Schüssler also ascribed the strong rise to widespread growth – from the agricultural industry to government expenditure. The recovery has also been quite rapid.
But he was concerned about the impact of high electricity prices. At some stage interest rates will also start rising, while government’s strong spending cannot last.
He hoped that by then the construction industry will have recovered. This industry, which makes a 3.5% contribution to the economy, has contracted almost 13% compared with a year ago.
The stress index, which indicates how much pressure the economy and the consumer are experiencing, was down on a year ago. This is owing to the prime interest rate being 14% down from a year ago and inflation remaining low.
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
