As the lagged effects of interest rate cuts continue feeding through to economic activity and the recovery gains momentum, the demand for imports can be expected to strengthen. The turnaround in the inventory cycle, which appears to have begun in the second quarter of this year, will heighten local demand for imports.
BIS Review 92/1999  2  The deficit on the current account should be financed comfortably by net capital inflows. Barring any unforeseen shocks on the international front, the South African economy has entered a period of more rapid growth coupled with a fairly comfortable balance of payments situation.