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Export growth is to benefit from continued commodity demand globally, favourable tourism trends and investment. Exports to Japan were highlighted. South Africa stands to benefit from Japan?¦s improving economic outlook. Exports to Japan increased from 5 % of total exports in 2001 to 9 %.
The current account deficit rose to 4.2 % in 2005 from 3.4 % in 2004, and 1.3 % in 2003 and it is expected to remain steady at 4.4 % in 2006 and 4.3 % in 2007. It poses no major threat to local macroeconomic stability as it will be easily financed by capital inflows.
The MER has been more optimistic than consensus on economic growth prospects...
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