Exporting sector to benefit

source: BOPA
27 April, 2010

GABORONE – The domestic export sector will benefit from the recovery in the world domestic economic activity because of reduced government spending.

According to a statement of the Monetary Policy Committee, demand and its impact in economic activity will be low owing to the effect on real incomes of the wage freeze and increase in VAT, administered prices and other levies.

The statement says the low domestic demand pressures together with the projected benign external inflationary pressures contribute to the positive inflation outlook in the medium term and inflation is projected to rise due to the faster quarterly price increases given price developments in South Africa, the increase in both VAT and electricity tariffs.

It says in the medium term inflation is expected to be within the objective range on a sustained basis by 2011 and the risks to this outlook include any substantial upward adjustment in the [continue reading]

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