The government’s target growth rate of 6% by 2010 will easily be exceeded, says Chris Hart, senior treasury economist at Absa.
“Rather, it will be achieved in the next two years and by 2010, the economy will be growing at 8%,” he explained.
Speaking on the final day of the SAPOA (South African Property Owners Association) annual convention in Durban yesterday, Hart said low inflation; low interest rates; rand strength and investment-driven growth will ensure this rate is achieved.
He says the rand is starting to trade cyclically as opposed to structurally.
“Long term global drivers, along with improving internal economic growth fundamentals, mean that the rand could realistically hold its value against currencies of its major trading partners for several years”.
However, he adds, volatility risk is high and this will create concern from time to time.
Hart expects the prime rate in 4-5 years time to be 2-3% points lower than current levels, “even if there are brief and minor short term upward adjustments in rates”.
“Momentum in consumer demand might be slowing but continued growth is expected with commercial and industrial property leading the rest”, reckons Hart.
A workshop on future city sky lines found that South Africa’s major cities will follow the global trend of renewing their skylines and signposting their commercial prominence to the world via distinctly designed tall buildings.
“It is inevitable that it will happen in South Africa”, says Alastair Collins, Global Board CEO and Tall Buildings Working Group.
Economies on a roll seek to re-identify themselves through their skylines, he explains.
The face of the cities is going to change and he says South African must build for the future, but at the same time, protecting our heritage and creating a legacy.
