Business leaders and economists are very upbeat in their expectations for South Africa’s general economic prospects in years to come, the Bureau for Market Research (BMR) of the University of South Africa said on Monday.
The positive expectations are taken from a research report entitled “Projection of future economic and sociopolitical trends in South Africa up to 2025”.
A panel of 13 eminent economists expects an average growth rate in excess of 3% per annum between 2005 and 2010 and even higher growth of 3,6% per annum for the period 2011 to 2025.
The main problems lie on the sociopolitical front where deterioration is expected in 2007 compared with 2004 although respondents were less negative than they were in 2003.
Various indicators such as new car and cement sales show that growth is accelerating, the government said last year.
Real gross domestic product (GDP) growth has accelerated significantly in recent years, from an average of 2,7% over the 1994-1999 period to an estimated 3,5% average over 2000-2005. In the first three quarter of 2005, real GDP growth was 5,1% year-on-year (y/y).
The treasury said several economic indicators suggest that domestic growth is accelerating at rates that many commentators considered unlikely a few years ago, with consumer and business confidence figures at record levels. – I-Net Bridge