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News archive - November-2011

Outlook and expectations of the environment impacting on agribusinesses

The International economy remains fragile, as the EU’s sovereign debt crisis remains unresolved and

prospects still appear gloomy and risky. Some economists consider the US to be in a “soft patch”, as

their numbers look better. However, the improved prospects are not considered to be sustainable as

some predictions indicate the possibility of the US’ economy moving into recession in 2013 due to

their massive debt levels. As the EU has GDP growth prospects of around or below 1%, it can be

considered to be in a “mild recession”, of which the recovery is expected to be slow and protracted.

As the EU is traditionally South Africa’s most important agricultural export destination, the

agribusiness sector is specifically concerned about the demand for its agricultural exports.

Purchasing power is relatively low, especially for high value goods and world agricultural trade is

expected to be low in 2012. The relatively strong Rand is also limiting foreign earnings, making the

export sector less attractive.

10.01.2012 / Media Releases

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