JOY ORLEK GDP GROWTH of 4.5%-5% is the maximum potential for 2007 in the view of FNB chief economist Cees Bruggemans, regardless of the impact of positive external factors. While international events have the power to deflect the GDP performance higher – as seen over the past four years – "it won't be by much due to supply-side constraints,” he said. The top five sectors (70% of the economy) could average 5.5%-6% growth under such circumstances, as was the case for most of 2003-2006. “International events also do have the power to interrupt the long-term expansion. Depending on the severity and timing of intruding events, the economy could – under the worst of circumstances – be forced to the brink of recession by late 2007.
Economist sets 5% limit on GDP growth
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