THERE IS little in the budget which directly affects SA trade, according to Standard Bank economist, Goolam Ballim.
If you wish to assess what WILL affect trade, he said, you are more likely to find these factors outside the budget - in the World Trade Organisation (WTO) meetings, for example.
But on the macro-economic level Ballim judges the overall budget as promoting growth in investment and trade. It's going to significantly reduce the risk for foreign investors, he said, which, in turn, should also boost trade.
Nothing in the budget has come as a shock to observers, added fellow economist, Henry Flint.
This, he said, is best illustrated by the fact that the budget day is no longer a day of anxiety, market anticipation and potential instability.
Multi-year projections of public expenditure - reinforced by the credibility of such estimates - have gone a long way to turn budget day into a time of affirmation, and not an occasion for fiscal or other surprises.
One area of activity that was expected in this budget was a further easing of exchange controls. But again, no shocks.
Said Ballim: Budget 2000's further, but gradual, relaxation of exchange control reaffirms the government's adherence to the broad macro-economic strategy that aims to improve the global competitiveness of the economy.
For all practical purposes, South Africa has no binding policy getting in the way of foreign direct investment in the country.
Sustaining the gradual liberalisation of exchange control of recent years, the budget provided minimal adjustment to existing restrictions on residents, Flint added.
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