R/€ = 15.17Change: -0.05
R/$ = 13.36Change: 0.04
Au 1157.10 $/ozChange: 12.95
Pt 980.00 $/ozChange: 27.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Jan 31, 2007

Gauteng economy feeling pressure from higher rates, inflation

© Reuse this The Gauteng economic environment faces its toughest economic challenge since 2003, with higher interest rates and inflation placing great pressure on businesses, the Gauteng Business Barometer (GBB) for December indicates.

The GBB is a measure of economic growth and the business mood in the province and was developed through a partnership between the Gauteng Business newspaper, Standard Bank and economist Mike Sch�ssler.

The index for December slipped by 6,2%, from 154 to 145 index points, compared with its performance in November, Standard Bank said on Wednesday.

The index was also 4,8% lower than in December 2005, when it stood at 152 index points.

Sch�ssler said that the GBB for December clearly showed that it had become difficult to do business in the province. The economic stress index, a subindex of the GBB that measures negative economic factors, was at its highest level since 2003.

“It is driven up by higher inflation and interest rates, as well as an increase in civil debt judgements and a downswing in the creation of new jobs,” he noted.

Sch�ssler added that, although he expected more interest rate increases of between 25 and 50 basis points over the next few months, the negative impact on the economy could be at its peak.

Standard Bank chief economist Goolam Ballim added that, even though the GBB had slipped in December, he expected continued economic growth in Gauteng for 2007.

“The effects of higher inflation and a slowdown in the growth of property values on consumer spending is becoming more evident. Investment in infrastructure and the weaker rand will benefit the supply side of the economy and the growth drivers of the economy will therefore shift from consumers to producers.”

Ballim was confident that businesses would continue to cope with a volatile currency, which was at the mercy of domestic and international events.

He predicted that the rand would trade around R7,35 and R9,53 against the dollar and euro respectively, in 2007.”

He expected a stable year for interest rates, which could even start to decline at the end of the year.

Both Ballim and Sch�ssler agreed that 2007 would be a positive year for Gauteng’s economy, although the economic growth rate would be slower than achieved in the past few years.

Edited by: Nelendhre Moodley
© Reuse this Comment Guidelines (150 word limit)
Other Trade News
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...
The first phase of the repair and modernisation of the deep water port of Nacala, in Nampula province in Mozambique, is close to being concluded, the Macauhub news agency has reported. This phase will result in the port having new container and fuel terminals, plus a...
SELF-SUFFICIENCY Depending on the model, an Eau de Vie system can filter and chill at least 50 ℓ/h directly on-site
Studies conducted by public–private civil-society collaboration the 2030 Water Resources Group indicate that by 2030, there will be a 17% gap between water supply and water demand if users continue a similar water consumption pattern without planning for future...
Latest News
Updated 5 hours ago South African Airways (SAA) has enhanced its partnership with the airline’s in-flight duty-free concessionaire Tourvest Inflight Retail Services (TIRS), enabling Voyager members to earn miles when buying duty-free products and spend their miles when shopping for...
Updated 5 hours ago South Africa's new visa regulations are having an adverse impact on the country's tourism industry without proof that they are making any impact on child trafficking, according to Hussein Dabbas, International Air Traffic Association (Iata) regional vice-president...
Updated 5 hours ago The Council for Scientific and Industrial Research (CSIR) has developed a semi-autonomous solution for early pothole detection to potentially replace the often time-consuming expensive manual road inspection. Showcasing the Visual Surveying Platform (VSP), CSIR...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
BUSINESS LEADERS PANEL Adam Craker, Ivor Chipkin, Alan Hosking and Allon Raiz at the 6th IQ Business Active Growth conference
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
ASHER BOHBOT EOH’s corporate goals were originally aspirations, but the company is relevant and is making a difference in the territories it operates in
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96