But the focus on infrastructure is not new, and the plans have often not met expectations, particularly since the 2010 World Cup. For example in 2009/10, only 83 per cent of the amounts budgeted for infrastructure was spent. In 2010/11, this had declined further to 68 per cent. Importantly, it is not only the government and state-owned enterprises that need to invest.
In both these areas, our expectations take into account the fact that the impact of the monetary policy adjustments made last year are still working their way through the household sector. All of this should mean that domestic demand will rise at, or slightly below, trend pace over the coming year.