ECONOMIC WEEK AHEAD: Median forecast suggests minor growth of 2.7%
ECONOMISTS are forecasting that the economy avoided a technical recession and instead is likely to have grown by a seasonally adjusted and annualised 2.7% in the second quarter of 2016.The growth would follow a 1.2% decline in the first quarter. The 2.7% is a Business Day median consensus forecast from a survey of seven economists.Statistics SA will release the GDP data on Tuesday.Despite the prediction of an improvement, the country is in for a challenging year ahead, with zero growth and high inflation forecast by the Reserve Bank.First National Bank economist Mamello Matikinca said data suggested that the production side of the economy — such as manufacturing — had held up well in the second quarter, while consumer spending remained constrained by high inflation, weak credit demand and confidence, high unemployment and interest rates.Retail sales, as well as financial and business services, also held up relatively well in the second quarter, which is another factor pointing to be...
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