South Africa’s budget deficit for October 2006 was recorded at R3,3-billion compared with a small surplus of R384-million in October 2005, indicating the government is on track to meet its projected budget deficit of R7,8-billion. The cumulative deficit for the year is R7,2 billion compared with a cumulative deficit of R13-billion in October last year, National Treasury’s statistics show.

South African Finance Minister Trevor Manuel said on Tuesday that South Africa’s economy was on track to reach the 4,4% growth forecast in 2006 as set out in the Medium Term Budget Policy Statement, but at the same time he pointed to a few dark clouds on the horizon that needed to be kept in check.

Credit Guarantee said on Monday it had reviewed and upgraded its credit ratings of four of South Africa’s trading partners and had also re-rated Angola as open for export cover. "Having emerged from under the cloud of civil war, enormous opportunities now exist in the construction, agricultural, infrastructural, tourism and oil/mining-linked sectors [of Angola]," said Credit Guarantee.

<i>Moody’s Economy.com</i> says while the rand could remain vulnerable to further bouts of weakness and volatility in the coming months, its medium-term outlook is for a stronger rand amid rising foreign reserves and strong inflows of foreign direct investment.

In its November country report on Lesotho, the International Monetary Fund (IMF) said that while the country had made good progress towards macroeconomic stability, economic activity needed to pick up speed and the medium-term fiscal position needed to be strengthened.

Global investment house Lehman Brothers said on Friday morning that while they remained concerned about the long-term outlook for South Africa and its markets, things were okay for now. Commenting on the views expressed on oil by central bank governor Tito Mboweni they added that they would argue that the recovery of the rand since the last Monetary Policy Committee meeting was at least as positive.

Standard Bank’s house price index shows a moderate uptick in house-price growth in October to 8% growth compared with a year ago, although the researchers say that this does not signal an improvement in the housing market or general consumer activity.

South African Reserve Bank governor Tito Mboweni said on Thursday morning that South Africa was very much part of the global village and was heavily influenced by international economic developments, but added that many of these developments had resulted in increased uncertainty and risk.