In addition, wage demands typically remain well in excess of the inflation target, and could very conceivably rise in the event of a lasting overshoot of that target, prompting an unfavourable wage-price spiral. Over the past couple of years, there has been evidence of a reduced exchange rate passthrough to inflation compared with previous cycles of rand depreciation.
The average annual growth rate of East Asian emerging economies since 2000 reached 7 percent, substantially exceeding that of industrialized economies. Since the crisis, there has been a considerable improvement in economic fundamentals in the region.