DTI sees SA as ‘well placed’ to benefit from global economic pick-up

SOUTH Africa’s economy is "well placed" to benefit when global economic growth and demand improve this year, Department of Trade and Industry chief economist Stephen Hanival says, although some economists warn that the growth in manufacturing will be modest.  

While better than expected retail, mining and manufacturing production data were pointing to economic growth having improved in the final quarter of last year, the outlook among many economists is for the manufacturing sector and the economy to post modest growth this year.

Economists are looking for economic growth of about 2.5% this year — which is slightly less than the Reserve Bank’s 2.8% and the Treasury’s 3%.

Mr Hanival said recent data showing an increase in manufacturing production was positive for other sectors as manufacturing drew inputs from a range of primary and tertiary sectors such as agriculture, mining, electricity and services. Manufacturing production rose 2.5% in December compared with a year ago, from 0.3% in November.

"Given that the full-year increase in production was based on increases in seven of the 10 manufacturing sectors, this suggests that a broad-based recovery is increasingly taking hold in the manufacturing sector," he said.

With global economic demand forecast to improve and the rand expected to continue maintaining a weaker bias, local exporters were set to benefit. READ MORE

Source: BusinessDay  #IFAMAFRICA