Thursday, 19 October 2017 23:43

3rd quarter Absa Homeowner Sentiment Index sees an improved property market

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Perceptions about the property market improved in the third quarter.

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After a contraction in South Africa’s real gross domestic product in the fourth quarter of 2016 and the first quarter of this year, economic growth rebounded to 2,5% at a seasonally adjusted annualised rate in the second quarter of the year.

The second-quarter growth was to a large extent influenced by strong growth of 33,6% quarter-on-quarter (q/q) in agricultural production. Excluding the agricultural sector, the economy showed growth of 1,6% in the second quarter compared with the preceding quarter.

The forecast is for the economy to grow by a real 0,6% in 2017, with growth expected to rise to 1,1% in 2018.

Headline consumer price inflation has slowed down from 6,6% year-on-year (y/y) in January this year to 4,8% y/y in August, to a large extent as a result of a sharp downward trend in food price inflation over this period.

These developments contributed to an average headline inflation rate of 5,5% y/y in the first eight months of the year.

The forecast is for inflation to average between 5% and 5,5% in 2017 and 2018. The major risks to the inflation outlook remain the rand exchange rate as well as fuel and electricity price trends. 

 

Last modified on Friday, 20 October 2017 10:54

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