‘SA’s prospects look positive’

Trade with dynamic emerging economies, particularly China, India and Brazil, has lifted South Africa’s economic prospects, according to credit insurer Coface. One of the recovery factors is GDP having shown an increase in the fourth quarter of 2011, coming in at 3.2% quarter-on-quarter at a seasonally adjusted annual rate. Coface South Africa projects a (GDP) growth of 2.8% in 2012 and 4.4% in 2013. Due to weak demand from the Eurozone, it could mean that export growth could slow, but it is currently being kept strong by a weaker rand and increasing fixed investments, says Coface. In 2011 exports increased 21% while imports rose 36% compared to 2010. “This clearly shows that there is stabilisation in export momentum, but also a rise in import growth.”