n Professional Accountant - Rocky recovery expected for South Africa during 2015 : economy

Abstract

South Africa's GDP growth rate is expected to recover somewhat to around 2.5% in 2015, up from the strike-afflicted estimated growth of 1.4% in 2014. Some recovery in household spending is foreseen. However, the expected hike in personal income taxes combined with high services costs will leave consumer spending gains below previous upturns. A move towards fiscal consolidation, by railing in government's escalating public sector wage bill, will also pose a drag on South Africa's near-term growth prospects. A significant fall in the international Brent oil price, assuming geo-political stability in the near term, could be positive for both South Africa's inflation and interest rate outlook in the next 12 months.