This means that the GDP growth that we have recorded may have been closer to the recent growth in the economy’s productive capacity than previously thought. If so, that would have left the economy with a little less spare capacity (a lower unemployment rate) than had been expected. Yet this can only account for part of the unexpected adjustment in the labour market.
3  BIS Review 93/1999  Fortunately, the Reserve Bank’s staff should be able to refine and strengthen the Bank’s forecasting framework, especially with the help of international experts in this field. The Bank has enough experience in information technology for the implementation of inflation targeting and the other preconditions are generally met in the case of South Africa.