Absa backs SA economy vault Fin24
Johannesburg - The local economy is expected to grow by 3.3% as it shrugs of its recessionary blues, Absa Capital's economics team said on Thursday.
The economy's growth or gross domestic product (GDP) has so far exceeded expectations, said Jeff Gable, Absa Capital head of research at a media briefing in Sandton.
"The way in which it surprised our macro view is the nature of the growth," said Gable.
According to Gable, the group moved its forecasts as the country's better-than-expected economic performance was based largely on consumer spending.
GDP jumped by 3.2% in the fourth quarter of 2009, coming in impressively above market expectations of 2.6% growth for the quarter.
"Data from the demand side of the economy revealed the consumer is on the road to recovery," said Gable. "Significant rate cuts are clearly helping the consumer."
Household disposable consumption spending grew 1.4% quarter-on-quarter following the previous quarter's near -2% contraction.