The euro area, which is an important export destination for South African products is now expected to grow by 1,4 per cent, compared to 2,1 per cent in the previous forecast. It is of concern that the risks are seen to be on the downside and growth is only expected to improve marginally in 2009.
On the positive side, our trade with emerging markets has been increasing, particularly with Asia, and these economies, while slowing, are still expected to experience relatively robust growth. The IMF expects growth in the emerging-market and developing economies to average 6,7 per cent in 2008, down from the September forecast of 7,4 per cent.