"After three consecutive quarters of improvement, GDP growth is expected to sustain its stronger performance in 2010 and 2011. According to the Bank's latest quarterly projections, real output is expected to grow at annual average rates of 2.7 and 3.6% in 2010 and 2011," said the central bank in its May Monetary Policy Review.
Quarter-on-quarter annualized real GDP growth is expected to be 3.7 and 3.2% in the first and second quarters of 2010 respectively.
In the March 2010 Reuters survey of long-term forecasts for the South African economy, analysts expect real GDP to grow by 2.88 and 3.52% in 2010 and 2011 respectively. It is expected to grow by 3.86% in 2012.
However the National Treasury's February 2010 Budget Review expected real output growth to register at 2.3 and 3.2% in 2010 and 2011, and reach 3.6% in 2012.
"On the demand side, sources of growth during this forecast period are expected to be final consumption by households and government, gross fixed capital formation and net exports. On the supply side, the secondary and services sectors are expected to be the main sources of growth," said the Bank.
Statistics South Africa will release the First Quarter 2010 GDP tomorrow, Tuesday 25 May 2010.
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