http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.63Change: -0.14
R/$ = 10.60Change: -0.09
Au 1284.05 $/ozChange: 2.43
Pt 1404.50 $/ozChange: 4.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 17, 2012

SA growth forecast lowered as world economy struggles

Back
Absa Capital|Efficient Group|Africa|Asia|Europe|Angola|Libya|Nigeria|South Africa|United Kingdom|United States|Zambia|Manufacturing Sector|Ilke Van Zyl|Merina Willemse|Middle East|North Africa|Sub-Saharan Africa
absa-capital|efficient-group|africa|asia|europe|angola|libya|nigeria|south-africa|united-kingdom|united-states|zambia|manufacturing-sector|ilke-van-zyl|merina-willemse|middle-east|north-africa|subsaharan-africa
© Reuse this



Weaker recovery in the world economy over the past three months has seen the International Monetary Fund (IMF) slightly lowering South Africa’s growth forecast for 2012 to 2.6% from 2.7% projected in April.

Although 2012 growth projections for the eurozone remained unchanged in the Economic Outlook (WEO) Update, published this week, growth rates for the UK and US were lowered to 0.2% and 2%, respectively.

“South Africa is a small, open economy that is vulnerable to what happens in the developed economies, especially through the trade links and by extension our manufacturing sector, which is in close correlation with our export sector,” Absa Capital macro economist Ilke van Zyl told Engineering News Online.

The country’s projected growth rate for 2013 was also lowered to 3.3% from 3.4% in the April forecast.

Van Zyl pointed out that although the projected growth rate of 3.3% for next year, which would hinge on the situation in the eurozone, was an improvement on the 2012 growth forecast, it was still not seen as significant growth.

“This suggests sluggish growth going forward, hampered by high debt levels,” she noted.

Similarly, sub-Saharan Africa’s growth for 2012 was lowered to 5.4%, from 5.5%, but remained the same for next year at 5.3%. This marked a fairly robust growth trend, which the IMF attributed to the region's relative insulation from external financial shocks.

“The sub-Saharan Africa economy is bucking the global growth trend; it is no longer Asia,” Van Zyl said.

Efficient Group economist Merina Willemse stated that higher growth in the region, compared with South Africa, was driven by countries such as Angola, Zambia and Nigeria.

On a global scale, the IMF report projected growth this year to remain relatively weaker than in 2011, especially in regions connected more closely with the euro area.

However, in contrast with the broad trends, growth in the Middle East and North Africa would be stronger in 2012 to 2013 relative to last year, as key oil exporters continued to boost oil production and domestic demand, while activity in Libya was rebounding rapidly after the unrest in 2011.

The IMF noted in its updated WEO that in the past three months, financial market and sovereign stress in the euro area periphery have ratcheted up close to end-2011 levels, while growth in a number of major emerging market economies has been lower than forecast, partly owing to a somewhat better-than-expected first quarter that projected world growth to be 3.6% in 2012.

However, the revised baseline projections in the WEO Update suggested that these developments would only result in a minor setback to the global outlook, with global growth at 3.5% in 2012 and 3.9% in 2013, marginally lower than 3.6% in the April report.

Willemse maintained that Europe’s economic issues would take time to resolve and that recovery would be slow. She, however, noted that 2012 would be the turning point.


 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Economy News
Higher Education and Training Minister Blade Nzimande
Updated 6 hours ago Higher Education and Training Minister Blade Nzimande has outlined plans for the development of a new health and allied sciences university into which the Medical University of Southern Africa (Medunsa) campus of the University of Limpopo, located in Ga-Rankuwa, will...
State-owned logistics firm Transnet has announced a R2-million, three-year sponsorship agreement with the University of Stellenbosch Business School-Executive Development (USB-ED) – the public management development and training company affiliated to the USB –...
About 67 000 retired Transnet employees and beneficiaries would be paid an ad hoc bonus equalling 8.33% of their yearly individual benefit by the end of April. Transnet on Tuesday said it approved R178-million to distribute among members of the Transnet Second...
More
 
 
Latest News
Updated 6 hours ago As industry prepares for the launch of South Africa’s digital terrestrial migration, the South African Communications Forum (SACF) hosted a workshop to determine the country’s readiness in terms of compliance of set-top boxes [STBs] and access to funding. The...
Higher Education and Training Minister Blade Nzimande
Updated 6 hours ago Higher Education and Training Minister Blade Nzimande has outlined plans for the development of a new health and allied sciences university into which the Medical University of Southern Africa (Medunsa) campus of the University of Limpopo, located in Ga-Rankuwa, will...
Communications Minister Yunus Carrim
Updated 7 hours ago The costs of communicating have to drop, Communications Minister Yunus Carrim said on Wednesday. "Clearly, the costs have to come down. It's not just in the interests of the poor and disadvantaged but the economy as a whole," Carrim said in a statement following a...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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