While oil prices, electricity prices and the rand continue to pose upside risks to the inflation outlook, these are offset by the downside risks emanating from the weakness in demand and the projected inability of sluggish economic growth to close the output gap even by the end of the forecasting horizon.
The road to sustainable growth  The past two economic recovery phases in Japan, between the end of 1993 and the midst of 1997 and between early 1999 and the end of 2000, were both triggered by an increase in exports. But, unfortunately, in neither case did recovery lead to sustainable growth led by private demand.