The business cycle in South Africa
- Introduction.
- The current state of the business cycle in South Africa.
- The current prospects for the business cycle in South Africa.
- Conclusion.
- Bibliography.
The economic powerhouse of the continent, South Africa produces one fifth of its entire production. The gross domestic product (GDP) is four times that of its southern African neighbors and covering around 25% of the entire continent's GDP. Following the expansion of the global economy, South Africa is acquainted with a real growth rate of GDP of 5%, in 2006 (SARB, 2007: S-148). South Africa's economy has been in an upward phase of the business cycle since September 1999 - the longest period of economic expansion in the country's recorded history. As Mohr (2005: 63) defines, the business cycle ?refers to the fluctuations in the overall level or pace of economic activity?. It is ?the pattern of expansion (recovery) and contraction (recession) in economic activity relative to its long-term trend?. After analyzing the current state of the business cycle in South Africa, it is relevant to study its prospects.
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[...] The Business Confidence Index (BCI) compiled by the South African Chamber of Business (SACOB). According to Mohr (2005: this monthly indicator is a ?composite index that tracks the performance of 13 key economic indicators which have been judged by business to have the greatest bearing on the business mood.? The SACOB Business Confidence Index: 07 02/07 03/ 07 04/ 07 05/ 07 06/ 07 07/ 09 08/ The BCI bounced back to 98.7 in September 2007 from the August 2007 level of 98.1 the lowest BCI of the year. [...]