Colen Garrow
Colen Garrow
activities currency goods impact imported persistent similar strength
Persistent currency strength has had a detrimental impact on export-based activities in the manufacturing sector, making similar imported goods more competitive.
interest meets next rates
The SARB will probably do nothing with interest rates when it meets next week.
additional affordable appear budget collection costs cuts dependency earners exceeding finance fiscal housing income likely low middle minister national personal relief revenue tax welfare
It would appear that with revenue collection exceeding budget this fiscal year, additional tax relief may be forthcoming when Finance Minister Trevor Manuel unveils the national Budget for 2006/2007 on 15th February. Welfare and dependency grants, personal income tax relief, and cuts in those costs which would make housing more affordable for middle and low income earners are likely to buoy consumption expenditure, and manufacturing.
allow attract committee concerned credit element growth inflation introduce last monetary month policy sufficient
The monetary policy committee cautioned last month that it may not allow growth in credit to go unchecked, inferring that it may be concerned that consumption expenditure could introduce an element of inflation sufficient to attract a monetary tightening response.
balance budget despite fiscal good odd south
Despite the odd shortcoming, this Budget is on balance good. It entrenches South Africa's good fiscal record.
argued cause central debt further growing levels rate remains stimulus
While it remains manageable, it can be argued that it is the rate at which debt levels are growing that may cause no further stimulus from the central bank.
corporate remains somewhat tax unchanged
From this perspective, it is somewhat disappointing that corporate tax remains unchanged at 29% and that STC also remains unchanged at 12.5%.
disposable employed income money retail south spent
In short, more South Africans employed suggests more disposable income and more money being spent on retail goods.
average bringing changed december forecast highly less previous
Interestingly, the forecast for December may be little changed from the previous month, around 3.7%, bringing the average for 2005 to less than 4.0%, a highly respectable figure.
amount currency exceed foreign funds government held limits offshore private situation taken thus vehicle via
In such instances, funds held offshore may potentially exceed the R750Ê000 ceiling, which limits the amount of funds which may be taken offshore via the vehicle of private foreign currency accounts. The situation as it is, is thus inequitable and will have to be addressed by government at some stage.
amount currency exceed foreign funds government held limits offshore private situation taken thus vehicle via
In such instances, funds held offshore may potentially exceed the R750Â 000 ceiling, which limits the amount of funds which may be taken offshore via the vehicle of private foreign currency accounts. The situation as it is, is thus inequitable and will have to be addressed by government at some stage.
above account balance considered currency current deficit exports flag generally mark restore weakness
The current account deficit is above the 3% benchmark, a high-water mark generally considered to flag pending currency weakness to restore a balance between exports and imports.
although global looks persistent pick recovery remains sector strength threatened
The manufacturing sector remains threatened by the persistent strength of the rand, although it should pick up from what looks to be a recovery in global manufacturing.
economy grow irony looking needs saying shows south
The irony is that it wasn't so long ago that South Africans were saying that the economy needs to grow at 3%. Now we're looking at 3,3% and saying it's dismal. It shows how the expectations have shifted.