The South African economy in 2011 grew by an estimated real 3%. Jacques du Toit, Senior Property Analyst, ABSA, says that the economy in 2012 is forecast to grow by 2.8%.
The lower growth will be largely due to a slowing world economy which may impact negatively on South African export volumes.
This should be somewhat mitigated by a weaker year-on-year exchange rate. In turn, this should help to benefit South African export earnings.
The inflation rate is forecast to remain above the 6% level throughout 2012. This is right at the top end of the Reserve Bank’s 3-6% target range.
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