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The South African Economy. Presented by: Dawie Roodt 14 September 2006. Real Economy. GDP. GDP. Relative size to GDP, 2006 Q2. Fiscal Policy. State Finances. State Finances. State Finances. State Finances. Monetary Policy. Inflation. Inflation. Interest rates. Interest rates.
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The South African Economy Presented by: Dawie Roodt 14 September 2006
Exchange rates R/$ $/Euro
Economic Impact of the 2010 FIFA World Cup • Direct expenditure of R12,7 billion; • Contribute R21,3 billion to the GDP of South Africa; • Generate the equivalent of 159 000 annual jobs • Additional R7,2 billion will be paid to Government in taxes. Source: Gauteng Tourism Authority
Household debt to disposable income Source: SARB
Debt Servicing Cost Source: SARB
Savings to disposable income of households Source: SARB
Summary • Strong capital expenditure • Short term inflation risk (PPI) • Interest rate in upwards cycle • Currency less volatile • Effect of interest rate on consumer spending
Percentage of World GDP ‘04 Source: UNAIDS
4% of African area 23% of African GDP 21.2% of African Exports
GDP Source: UN
Countries Compared to Provinces Source: UN
AIDS Source: UNAIDS
Mistakes made in Africa ? ? ? ? • Private Property Rights • Regulated Prices • Idolise Leaders • Marketing Boards • Nepotism • Incompetence • Corruption • Poor Fiscal Discipline • Poor Monetary Policy • Unrealistic Projects
Development Data & Statistics Source: World Bank
Zimbabwe: GDP Source: IMF
Zimbabwe: GDP Source: IMF
Zimbabwe: Inflation Source: IMF