Africa October 2004

• South Africa’s GDP in Q2 jumped 8.6 percent compared to a year earlier. In its annual economic report, the South African Reserve Bank said, “lower interest rates, a growth-supportive fiscal policy stance and higher international prices for export commodities raised business as well as consumer confidence and was translated into higher real output. Nevertheless, the ratio of fixed investment to gross domestic product in South Africa remained low relative to that of many other developing countries and to investment levels needed to obtain high growth.”