This has implications for the management of the Government’s net asset position, including balancing options for taking on more public debt vis-àvis drawing on the accumulated national savings. The structural transformation of the economy is also an important consideration.
There is no doubt that China has had an impact despite the upward pressure on commodity prices. For example, footwear and clothing prices, which have a weight of just over 4 per cent in our CPIX, have been falling since October 2003. In the year to date, footwear and clothing prices have fallen by 6,6 per cent.