Research shows growth slows

By Staff Writer

Compare banks and save with Justmoney

Research shows growth slows

Well its back to the doom and gloom cycle again.

Yesterday the Bureau for Economic Research (BER) released its latest data. The BER was started in 1944 and is attached to the University of Stellenbosch. Business Report stated that the BER had cut its forecast for next year to 1.9%.

This would be the tardiest rate that we have grown at in ten years, and probably due in it's entirety to the international credit crisis. Their previous estimate had been for 3% growth.

This is in contrast to the Treasury estimates a 3.7% growth. However at the BER conference Treasury head of the budget office, Kuben Naidoo, said that the treasury is ready to step in and spend to support our economy. He said that we are ready to take on higher deficits, and that Treasury was ready to close the current account deficit to prevent a collapse of confidence in our economy.

We have already had R 52 billion pulled out this year.

The Dispatch also carried this story and stated that Naidoo dismissed any policy change from the ANC, saying that they would come to the same conclusions regarding the right policy for the situation as those policies that are already being implemented.

The entire Treasury response is to calm market fears and to let markets know that they are prepared and ready to go with support programmes if they are needed. This will almost guarantee that they will have to step in, because if private investment is falling due to fear and government is willing to step in then tax payer's money will more than likely be spent.

Business Day also covered the BER conference although their take was focussed on the possibility of an interest rate cut. The BER data seems to support a downward movement as the next interest rate change.

However as a caveat the BER had concerns that the current account deficit could be a drain on the ability of the MPC to cut rates. And in true economist fashion say that under certain circumstance the rates could forsee ably rise again. The main stream forecast was for rate cuts to begin in the second half of next year.

iAfrica carried an opinion from Old Mutual that predicted the South African Reserve Bank to begin lowering its rates from February 2009. Inflation is starting to come under control and the real economy was weakening leading to pressure for stimulation via rate cuts.

Statistics SA also released important data yesterday.

Business Report tells us that the number of debt summonses had increase 16.7% in the last three months, but that in mitigation of this the number of judgements actually granted fell by 13.7%.

Justmoney would see this as a clear indication that if you are experiencing debt problems then you should contact a debt counsellor immediately, rather than pull an ostrich and pretend it's not happening. A debt counsellor can help you to hold on to your assets even if they are issuing summonses against you.

In a final note Justmoney would like to hear from you. Send us your comments, stories, losses and wins to Editor@justmoney.co.za and we will get our team of experts to look at your view here.

Recent Articles

Featured Request your credit report from the right bureau

With so many different credit bureaus in South Africa, it may be difficult to decide from which one to request your credit report. We have a look at what you should be aware of when selecting a credit bureau.

Applying for a home loan? Consider the repo rate

When you apply for a home loan, one of your top priorities should be to secure a low interest rate. In order to achieve this, you need to be familiar with the repo rate. We find out more about this.

Effective financial planning as a single parent

As a single mom or dad, it can be challenging to keep up with the ever-increasing expenses of raising a child. We have a look at the importance of setting up a budget as a single parent.

How your credit score impacts your insurance – and vice versa

Since insurance is paid in advance, it may seem unrelated to your credit score. However, these two are in fact linked to one another. We find out why insurers look at your credit score.

Deals

Get a FREE flight ticket with Hotel Sky

Price: From R5,200
When: Until 31 January 2022
Where: Johannesburg and Cape Town

Voucher for 2 special at Bakwena Day Spa

Price: From R1,798
When: Until 31 January 2022
Where: Centurion, Hartbeespoort and Stellenbosch

Spier Hotel Summer Special

Price: Available on request
When: Until 31 March 2022
Where: Stellenbosch


Latest Guide

Guide to debt rehabilitation solutions