South African economy is set to enjoy a cyclical recovery led by the manufacturing sector, the World Cup effect and solid government spending, according to Bank of America (BofA) Merrill Lynch analyst Matthew Sharratt.
The international brokerage expects SA’s gross domestic product (GDP) to expand 3,2% this year, well ahead of the 2,8% consensus expectations.
With inflation expected to rise above 6% mid-year, the Reserve Bank was likely to raise interest rates from the third quarter.
The BofA Merrill Lynch Global Research Macro Year Ahead for 2010 report said the world economy was likely to grow ahead of consensus estimates, with global GDP likely to grow 4,4% this year. Emerging market economies were expected to take the lead, growing at an average 6,3%, while developed world economies should recover from recession and grow about 2,7%.
www.directinvestment.biz
Thursday, January 7, 2010
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