Absa boss predicts solid GDP growth

Absa expects South Africa to continue to experience solid economic growth for quite some time.

“I believe that we’re likely to see solid GDP [gross domestic product] growth for the next few years,” Absa CEO Steve Booysen told journalists on a trip to Mozambique where the South African bank has interests.

“Interest rates in our view will remain flat—but with a full 100 basis-point hike late next year,” he added.

The bank expects the rand to continue to trade in the R6-to-R6,50-a-dollar range for some time.

With regards to house prices, he doesn’t foresee a bubble.

“I think it will be a soft landing as long as interest rates remain low,” Booysen said.

“In general, our economy is in good shape.”

The real challenges he foresees in the economy are job provision, more flexible labour laws and the need for more attention on small and medium business enterprises.

He also believes it’s important for business to partner with the government in building capacity in the economy.—I-Net Bridge