Economy's snail's-pace progress

The economy will get a boost from higher commodity prices, a benign inflation outlook and better rains that will benefit agriculture, Reuters said yesterday.

A median of 27 economists in a Reuters poll during the past week suggested that growth in South Africa would accelerate to 1.1% this year and 1.6% next year.

The Reserve Bank estimates that the GDP expanded 0.4% last year.

"Higher commodity prices in combination with lower inflation, stable interest rates and a recovery in the agricultural sector should make 2017 growth somewhat stronger than in 2016," said Elize Kruger, at NKC African Economics.

Twelve of 14 economists bet that growth has escaped the slow-expansion trap of previous quarters.

South Africa's growth has been choppy in the past two years, with negative quarters three times on an annualised basis since 2014.

But KPMG's Christie Viljoen says only low growth can be expected.

Economists back their claims with the annualised growth rate in the Bank's leading indicator, which has turned positive, but they caution about the risks that lie ahead.

The economy relies heavily on the wellbeing of the eurozone, its biggest regional trading partner, and on China, its biggest national trading partner.