The domestic economy was expected to continue growing at a moderate pace (after a growth rate of 2.5 per cent for 2012), thanks to encouraging prospects for the global economy and improved sentiment following a successful ANC elective conference, which adopted the National Development Plan and provided some clarity in respect of policy positions around nationalisation in the mining industry.
The IMF’s World Economic Outlook (WEO) released in January 2013 indicated that “Global growth is projected to increase during 2013, as the factors underlying soft global activity are expected to subside”. Admittedly, the IMF also warned about downside risks that still remained.