President: Kgalema Motlanthe (2008)
Title:South African rand commentary, August 22, 2008.
Source:Euroweek 1068 (August 22, 2008)(296 words) From General OneFile.
The South African economy enjoyed a bounce in activity in the second quarter as mining and manufacturing production recovered from the effects of the power cuts at the beginning of the year. In Q2 GDP increased by 4.9% at a seasonally adjusted annualised rate, more than twice as fast as the 2.1% gain seen in the previous three months.
In the first half of the year the economy expanded by 4.2% compared with the same period of 2007.
However, all the forward looking indicators u weaker consumer and business confidence and slowing external demand u point to a marked slowdown in activity in the second half of the year.
This is likely to leave growth for the year as a whole somewhere closer to 3% rather than the governmentEs official 4.5% forecast. As the economy slows, and tax revenues fall short of target, the long end of the bond market will come under pressure.
In recent days the mid-year bond market rally appears to have run out of steam. At one stage the 10 year benchmark yield was down below 9.00%, a net decline of 190bp since the middle of the year. However, a round of profit taking has driven yields up by 20bp-30bp from their recent lows.
Investors will be watching the macro data carefully over the next few days. This coming week the July consumer and producer price indices will be released.
The South African Reserve Bank has dismissed the importance of the inflation indicators in the short term on the grounds that the trend over the medium term will be improving. However, recently the monthly inflation numbers have tended to surprise on the upside.1.
Title:Political, economic concerns plague South Africa casino industry.(SOUTH AFRICA BEAT).
Source:IGWB: International Gaming & Wagering Business...