Macroeconomic Forecast South Africa

BMI View: Consumer spending continues to show signs of life, boosted by the low interest rate environment, ongoing wage increases and rising asset prices. Nevertheless, the overall picture for the South African economy is one of only moderate growth. We see a continuation of the tepid recovery in 2011, with our forecast for real GDP growth standing at 3.5%. The rebound of the consumer sector will be a key driver, but headline growth will likely be reined in by rising imports.

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