South Africa » Outlook

International Property Brokers forecast that there is additional growth in construction and continued expansion in total domestic demand is expected to drive real GDP growth 4.5% in 2007.

The African National Congress (ANC) is expected to maintain its overpowering control during the forecast period. However, the party and its leadership will be preoccupied with maintaining party agreement and an arranged process of electing a successor to Thabo Mbeki as ANC president at the party's national congress in December 2007.

Economic policy will continue to focus on increasing economic growth and investment in order to create employment.  A sound mix of fiscal and monetary policy combined with public-sector wage moderation, weaker administered prices and lower private-sector unit labour costs (owing to productivity gains), inflation is expected to remain within the target range of 3-6.3% in 2007.

Moderately strong worldwide demand and high commodity prices will help to boost exports, but rising imports mean that the current account is forecast that it should narrow to 4.65% of GDP in 2007. The political outlook remains unchanged from the previous month.