George Glynos

Despite the government’s announcement of a R30-billion sovereign wealth fund, analysts are questioning its utility in a time of increasing debt

It seems 2014 will be a tough year for consumers, and economists say one can only expect respite sometime in 2015.

South African government plans to halve poverty and unemployment by 2014 appeared increasingly at risk on Tuesday as official statistics confirmed fears of a downturn in economic growth. Figures released by Statistics South Africa showed a drop in gross domestic product growth to 5,1% last year from 5,4% in 2006.

Overwhelmingly positive or mediocre? Economists on Wednesday had a variety of impressions to share of Finance Minister Trevor Manuel's national budget, tabled in Parliament earlier in the day. Colen Garrow, economist at Brait, said: "There was nothing in it for the embattled consumer."

The rand is back to being one of the world's worst-performing currencies in 2008 after a brief respite last year, and there appears nothing, for now, to halt its slide. A chronic energy crisis that is likely to slice into economic growth, political uncertainty and a gaping current-account deficit paint a gloomy picture for a currency prone to volatility.

South Africa's producer price index (PPI) rose by 10,3% year-on-year (y/y) in July from a 10,4% year-on-year increase in June, Statistics South Africa (Stats SA) data on Thursday showed. The PPI rose 1,6% on a monthly basis after June's monthly increase of 2,1%.

South Africa's real gross domestic product (GDP) at market prices on a quarter-on-quarter seasonally adjusted annualised (saa) basis rose by 4,5% in the second quarter of 2007 from 4,7% in the first quarter of 2007, Statistics South Africa said on Tuesday. This comes after GDP rose as high as 5,6% in the fourth quarter of last year.