Upbeat GDP prediction for 2007

ED RICHARDSON
ANOTHER YEAR of opportunities in South Africa is the 2007 prediction by Morgan Stanley’s London-based analyst Michael Kafe. The investment house is predicting a 2006 GDP growth number of 4.9% and is forecasting 4.3% for 2007. It expects the interest rate hikes to see a tightening of consumer belts. The external sector is also likely to show some improvement, with the current account deficit coming in only marginally above 5% of GDP as exports see some volume growth, thanks to capacity enhancements, and as the import bill sees moderate relief from low oil prices.