Swot South Africa
SWOT SOUTH AFRICA
Price inflation
The steps taken by the Reserve Bank to bring down inflation are working. Inflation was 9.8 in 2008 and to average 4,9% in 2009. Inflation should return to the target range in 2010 (forecast: 6.1) aided by a substantial output gap and the feed through of past rand appreciation.
Some factors were still of concern, necessitating continued vigilance in the application of anti-inflationary policy. These included: * high and volatile international crude oil prices * high grain prices due to adverse weather conditions, low inventories of agricultural goods and higher food prices * uncertainty concerning exchange-rate developments * salary and wage settlements being significantly in excess of the inflation target range * possible second-round effects of the abovementioned factors * fairly high rates of money supply and private credit-extension growth alongside continued buoyancy in domestic demand conditions * Increases in certain administered prices in excess of the inflation target range.
GDP
According to the OECD, Real GDP growth was negative in 2009 : -2.2 , but should turn positive in 2010 :2.7 boosted by the World Cup http://www.oecd.org/publicationanddocuments/0,3395,en_33873108_39418625_1_1_1_1_1,00.htmll | 2009 | 2010 | Real GDP | -2.2 | 2.7 | Consumer Prices | 7.2 | 6.2 | * Source: OECD
Interest Rates = approximately 7%
The most recent consumer price index inflation forecast by the Reserve Bank showed that CPI inflation was still expected to continue its moderate downward trend and to enter the Bank's target range of three to 6% during the second quarter of 2010.
It was expected to remain within the target range for the rest of the forecast period ending 2011
INFLATION
Turning to the outlook for inflation, he said the Bank's most recent forecast remained "more or less unchanged" compared with the previous forecast.
"However, CPI inflation is still
Price inflation
The steps taken by the Reserve Bank to bring down inflation are working. Inflation was 9.8 in 2008 and to average 4,9% in 2009. Inflation should return to the target range in 2010 (forecast: 6.1) aided by a substantial output gap and the feed through of past rand appreciation.
Some factors were still of concern, necessitating continued vigilance in the application of anti-inflationary policy. These included: * high and volatile international crude oil prices * high grain prices due to adverse weather conditions, low inventories of agricultural goods and higher food prices * uncertainty concerning exchange-rate developments * salary and wage settlements being significantly in excess of the inflation target range * possible second-round effects of the abovementioned factors * fairly high rates of money supply and private credit-extension growth alongside continued buoyancy in domestic demand conditions * Increases in certain administered prices in excess of the inflation target range.
GDP
According to the OECD, Real GDP growth was negative in 2009 : -2.2 , but should turn positive in 2010 :2.7 boosted by the World Cup http://www.oecd.org/publicationanddocuments/0,3395,en_33873108_39418625_1_1_1_1_1,00.htmll | 2009 | 2010 | Real GDP | -2.2 | 2.7 | Consumer Prices | 7.2 | 6.2 | * Source: OECD
Interest Rates = approximately 7%
The most recent consumer price index inflation forecast by the Reserve Bank showed that CPI inflation was still expected to continue its moderate downward trend and to enter the Bank's target range of three to 6% during the second quarter of 2010.
It was expected to remain within the target range for the rest of the forecast period ending 2011
INFLATION
Turning to the outlook for inflation, he said the Bank's most recent forecast remained "more or less unchanged" compared with the previous forecast.
"However, CPI inflation is still