South Africa
Pages | 57 |
Page 57
South Africa is seeing its longest expansion, thanks in part to sound policies. But inflation has risen, power supply constrains growth, a widening current account deficit raises vulnerability, and unemployment remains high.
Strong domestic demand has helped spur growth in the past few years . . .
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But that strong demand, along with rising global food and fuel prices, has increased inflation, prompting the central bank to raise interest rates . . .
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So far, the current account deficit has been more than offset by capital inflows, but reliance on portfolio flows increases vulnerability in today's global environment.
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. . . contributing to a steady reduction in public debt and the first fiscal surplus in decades.
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. . ....
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