There are strong indications that the South African economy has reached a higher growth path. The growth rate averaged 3 per cent per annum between 1994 and 2003 as compared to 1 per cent during the decade preceding the country’s advent to democracy. However, growth rates in 2004 and 2005 have averaged 4,5 per cent and 4,9 per cent respectively.
While growth is expected to decelerate somewhat this year, it is still expected to exceed 4 per cent. There is thus little doubt that the sustained application of prudent macroeconomic policies is bearing fruits.