E c o n o m e t r i x

 Ecobulletin                 28 Aug  01

A decision support service (c) Econometrix

July money supply and credit extension uncomfortably high

l At 2.4% y-o-y, GDP growth in the 2^nd Qtr of 2001 was marginally firmer than expected. Most importantly, however, it was a far better number than the GDP growth figures for the 2^nd qtr in most other countries of the world. This reflects the soundness of the fundamental economic situation in South Africa at present notwithstanding the dampener which the current impasse surrounding privatisation might be having on business confidence.

l Growth in many of the economic sectors reflected an element of bottoming out at a modest rate. Accordingly, the latest figures are unlikely to bring forward or increase the magnitude of any interest rate cut that might be forthcoming in mid-September.

• 2^ND QTR GDP growth comes out at an encouragingly moderate 2.4%
• Only agriculture and government showed declining GDP growth
• Easing of monetary policy will not be accelerated by the figures