Medium Term Budget Policy Announcement
During the last four years South Africa experienced relatively high levels of economic growth reaching 5% per year on average. A lower economic growth is however expected for the South African economy for the remainder of 2008 and 2009. The expected decline in the economic growth can be attributed to the financial crisis currently experienced in the US and Europe.
Economic growth for 2008 is estimated at 3.7% while a figure of 3% is expected for 2009. Forecasts by the National Treasury only expect economic growth to regain momentum in 2010 as a result of the FIFA World Cup and the recovery of international financial markets. The slowdown in the world economy will affect the South African market by reducing the demand for exports of locally produced goods. Announced Capital Expenditure Programs by clients and Government are still going ahead with money committed to these projects. Financing these projects will however become more expensive in the light of the international financial crisis and liquidity strain within these markets.
Fixed Investment is thick on the ground (Cees Bruggemans) - Sunday Times 1 April 2007
How new infrastructure could lift growth floor (Cees Bruggmans) - Sunday Times 27 May 2007
Risks to the scenarios spelt out for the SA construction economy - Henk Langenhoven (October 2007)
Efficiency and beyond - The Economist July 18th 2009
The other worldly philosophers - The Economist July 18th 2009
What went wrong with Economics - The Economist July 18th 2009 |
