Macroeconomic Forecast South Africa

BMI View: The South African economy is poised for a slowdown in 2012, with real GDP growth forecast to come in at 2.7%, down from an estimated 3.1% in 2011. Although private consumption should hold up relatively well, serious headwinds from the global economy will inevitably take their toll on growth. We maintain our core view that economic growth in South Africa will be driven by the demand side (ie, wholesale and retail trade, financial and personal services) while the supply side (primarily mining and manufacturing) continues to remain weak.

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