http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.23Change: -0.04
R/$ = 11.08Change: -0.04
Au 1216.84 $/ozChange: -9.39
Pt 1337.00 $/ozChange: -12.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 31, 2007

Gauteng economy feeling pressure from higher rates, inflation

Back
Standard Bank|Goolam Ballim|Infrastructure|Mike Schssler|Mike Sch�ssler
|Infrastructure|
standard-bank|goolam-ballim|infrastructure|mike-schssler|mike-schssler-person
© 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
Updated 3 hours ago President Jacob Zuma would next month officially launch the Dube Tradeport, in Durban, as an industrial development zone (IDZ), the Department of Trade and Industry (DTI) announced on Friday. At the launch event, which was scheduled to take place on October 7, the...
Egypt must strip back bureaucracy to attract investment in its planned second Suez canal and bring in new laws making it easier for companies to get licences and land, a legal firm linked to the project said. Egypt plans to build the new canal alongside the existing...
MODULAR APPROACH Johnson Controls’ modular system can be grouped with up to eight mini-chillers that are either 40 kW, 60 kW, 80 kW, 100 kW or 140 kW
Technology group Johnson Controls launched its mini-chiller heating, ventilation and air-conditioning (HVAC) solution, which can be used in series as a modular solution, in May this year. Johnson Controls building efficiency GM Neil Cameron notes that the South...
More
 
 
Latest News
Updated 2 hours 56 minutes ago President Jacob Zuma would next month officially launch the Dube Tradeport, in Durban, as an industrial development zone (IDZ), the Department of Trade and Industry (DTI) announced on Friday. At the launch event, which was scheduled to take place on October 7, the...
Updated 3 hours ago JSE-listed York Timber Holdings on Friday said it expected its operating profit for the year ended June 30 to be between 25% and 30% lower than that of the prior year. As a result of the lower operating profit, combined with a 1% increase in the company’s biological...
Updated 3 hours ago Engineering solutions provider ELB Group has reported an 18% increase in turnover for the year, boosting overall income, from R1.9-billion in 2013, to R2.3-billion for the 12 months ended June 30. Describing this as “a satisfactory result, given the current difficult...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks