adminEconometer survey, an index of six weighted indicators that looks two years ahead, jumped to 266,84 in February from 257,83 the previous month.
“South Africa is well positioned for long-term, robust growth.
“Government’s focus on infrastructure, if correctly implemented, will pay off,” said Annabel Bishop, economist at Investec Securities.
The poll of 17 economists said interest rates would end the year at 5,5 percent, adding 100 basis points next year and in 2014.
The South African Reserve Bank has left the repo rate flat at 5,5 percent throughout 2011, after reductions totaling 650 basis points in the two years to the end of 2010.
At its last meeting in January, the central bank hinted that a rate cut was all but out of the window, but a firmer rand — with its implications for more favourable inflation — could be a temptation for further stimulus to support growth. The Treasury cut its forecast for Africa’s biggest economy to 2,7 percent this year from an earlier projection of 3,4 percent, owing to a slowdown in Europe and the United States, but the government is planning major projects to boost jobs. Finance Mminister Pravin Gordhan said growth would pick up to
3,6 percent next year and 4,2 percent once the effects of major government infrastructure spending had filtered through. — Reuters.
The budget estimated infrastructure spending at 844 billion rand ($110 billion) over the next three years.
The poll found that the median GDP forecast was unchanged this month at 2.8 percent for this year, 3.5 percent next year and accelerating to 4 percent in 2014.-Reuters
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