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/ 28 September 2005
South Africa slipped one position to 42nd in the <i>Global Competitiveness Report</i> released on Wednesday by the World Economic Forum, but this was only because two new countries, Qatar (19) and Kuwait (33), came in above it. In an unchanged universe, South Africa would have moved up one position to 40th.
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/ 16 September 2005
The International Monetary Fund’s (IMF) executive board has commended the South African government and South African Reserve Bank for their macro-economic polices, which have resulted in strong economic growth, low inflation, good fiscal policy management and a marked improvement in foreign reserves.
The South African government is on track to achieve its first ever fiscal year surplus, if the trends established in the first four months remain intact. In the first four months, revenue rose by 21,2% year-on-year (y/y), while expenditure increased by 12,2% y/y.
The risk of ever-higher fuel prices should be negated by the South African National Treasury, as one of the functions of the Treasury is to provide macro-economic stability, but currently the volatile and rising international oil price is creating instability.
Higher fuel costs have hit rural bed-and-breakfast (B&B) establishments hard this year, as companies have had to raise fuel allowances due to higher fuel costs for their commercial travellers visiting rural areas, while cutting their accommodation allowances to keep down the overall cost per sale.
The total number of liquidations increased by 1,1% year-on-year (y/y) to 265 in May 2005 after rising by 14,3% y/y to 279 in April 2005, Statistics South Africa said on Thursday. The comparisons are distorted to a certain extent by the fact that Easter this year took place in March compared with April last year.
London-listed South African life assurance group Old Mutual said on Monday that the adoption of European Embedded Value (EEV) increased its embedded value by 0,5% at the end of December 2004. The EEV principles require best-estimate assumptions, consistency between assumptions and active review.
South African residential property prices should grow at between 18% and 25% this year after an increase of 28% last year, Standard Bank economists Elna Moolman and Matthew Cook told a media briefing on Wednesday at the launch of the quarterly Residential Property Gauge.
The <i>Sunday Times</i> job-advertising space has risen by 25,3% year-on-year in the first four months this year, compared with an 8,7% increase in the first four months of 2004. This points to a strong employment market in 2005, as changes in job-recruitment space tend to lead changes in employment.
The South African housing market is most probably in the process of cooling off after a strong boom phase over the past few years, according to commercial bank Absa. "House-price growth is currently on a downward trend," Absa senior economist Jacques du Toit wrote in the latest <i>Property Trends</i> newsletter.