PORTFOLIO AND SELECT COMMITTEES ON FINANCE June 2006

RECENT ECONOMIC DEVELOPMENTS International Economy

International oil price

OECD leading indicator and industrial production

World economic outlook: Real GDP Annual percentage change in real GDP Actual Projections World 4,8 4,9 4,7 Advanced economies 2,7 3,0 2,8 United States3,5 3,4 3,3 Japan 2,7 2,8 2,1 Euro area 1,3 2,0 1,9 United Kingdom 1,8 2,5 2,7 Newly industrialised Asian economies* 4,6 5,2 4,5 Emerging-market and developing countries 7,2 6,9 6,6 Africa 5,2 5,7 5,5 South Africa4,9 4,3 4,1 Central and eastern Europe 5,3 5,2 4,8 Developing Asia 8,6 8,2 8,0 China 9,9 9,5 9,0 India 8,3 7,3 7,0 Western hemisphere4,3 4,3 3,6 * Include Hong Kong SAR, Korea, Singapore and Taiwan Province of China Source: IMF World Economic Outlook, April 2006

World economic outlook: Consumer prices Annual percentage change in consumer prices Actual Projections World3,8 3,8 3,5 Advanced economies 2,3 2,3 2,1 United States 3,4 3,2 2,5 Japan -0,3 0,3 0,6 Euro area 2,2 2,1 2,2 United Kingdom 2,1 1,9 1,9 Newly industrialised Asian economies* 2,2 2,2 2,3 Emerging-market and developing countries 5,4 5,4 4,8 Africa 8,5 9,1 7,3 South Africa 3,4 4,5 4,9 Central and eastern Europe 4,8 4,1 3,4 Developing Asia3,6 3,9 3,5 China 1,8 2,0 2,2 India4,2 4,8 4,9 Western hemisphere6,3 5,8 5,6 * Include Hong Kong SAR, Korea, Singapore and Taiwan Province of China Source: IMF World Economic Outlook, April 200

Key central bank interest rates Per cent Countries 1 January June 2006 Latest change (Percentage points) United States 2,255,00 10 May 2006 (+0,25) Japan 0,00 0,00 19 Mar 2001 (-0,15) Euro area 2,00 2,75 8 Jun 2006 (+0,25) United Kingdom 4,75 4,50 4 Aug 2005 (-0,25) Canada 2,50 4,25 24 May 2006 (+0,25) Denmark 2,00 2,50 3 Mar 2006 (+0,25) Sweden 2,002,00 23 Feb 2006 (+0,25) Switzerland 0,25 – 1,25 0,75 – 1,75 16 Mar 2006 (+0,25) Australia 5,25 5,75 2 May 2006 (+0,25) New Zealand 6,50 7,25 8 Dec 2005 (+0,25) Israel 3,70 5,25 1 May 2006 (+0,25) China 5,585,8528 Apr 2006 (+0,27) Hong Kong 3,756,5011 May 2006 (+0,25) India 4,75 5,75 8 Jun 2006 (+0,25) Malaysia* 2,70 3,50 26 Apr 2006 (+0,25)

Key central bank interest rates (cont’d) Per cent Countries 1 January June 2006 Latest change (Percentage points) South Korea 3,25 4,25 8 Jun 2006 (+0,25) Taiwan 1,75 2, Mar 2006 (+0,125) Thailand 2,00 5,00 7 Jun 2006 (+0,25) Brazil 17,75 15,75 19 Apr 2006 (-0,75) Chile 2,25 5,00 13 Apr 2006 (+0,25) Mexico** 8,81 7,00 21 Apr 2006 (-0,25) Czech Republic 2,502,00 27 Oct 2005 (+0,25) Hungary 9,50 6,00 20 Sep 2005 (-0,25) Poland 6,50 4,00 28 Feb 2006 (-0,25) Russia 13,00 12,00 26 Dec 2005 (-1,00) South Africa 7,50 7,50 8 Jun 2006 (+0,50) * The central bank of Malaysia introduced a new interest rate framework on 23 April ** The Bank of Mexico has decided on a gradual transition toward a policy target regime, but will retain the “el corto” until the transition is complete. Source: National central banks

USA: Real gross domestic product

USA: Unemployment rate

USA: Consumer prices and central bank interest rates

Japan: Real gross domestic product

Japan: Unemployment rate

Japan: Consumer prices

Euro area: Real gross domestic product

Euro area: Unemployment rate

Euro area: Consumer prices and central bank interest rate

UK: Real gross domestic product

UK: Unemployment

UK: Consumer prices and central bank interest rate

SADC: Inflation Annual percentage change in consumer prices Feb 2006 Mar 2006Apr 2006 Africa 8,1 8,5 * * * Angola 43,6 23,0 15,7 14,4 * Botswana6,9 8,6 13,1 13,8 14,2 Lesotho5,2 3,7 * * * Malawi 11,6 12,3 17,1 16,6 16,1 Madagascar 14,0 18,4 8,8 9,4 * Mauritius 4,1 5,6 5,8 6,1 5,9 Mozambique12,6 7,2 15,2 16,7 17,1 Namibia 4,1 2,4 3,7 4,6 4,4 South Africa1,4 3,4 3,9 3,8 3,7 Swaziland 3,4 4,8 4,6 5,2 5,1 Tanzania4,3 4,6 5,8 6,5 6,9 Zambia18,0 18,3 10,3 10,7 9,4 Zimbabwe350,0 237,8 782,0 913, ,9 * Not available Source: National central banks, unpublished Standard Bank data and IMF World Economic Outlook, April 2006

RECENT ECONOMIC DEVELOPMENTS National Economy

Real gross domestic product 6-year upswing

Real gross domestic product by sector

Real gross domestic expenditure

Real final consumption expenditure by households

Real disposable income of households

Household debt as percentage of disposable income of households

Real final consumption expenditure by general government

Real gross fixed capital formation

Real gross domestic final demand

Change in inventories

Gross saving as percentage of gross domestic product

Non-agricultural employment

Sep Mar Sep Mar Sep (000’s) (000’s) (000’s) (000’s) (000’s) a. Total employment b. Total unemployed (official definition) c. Total economically active = a + b d. Total not economically active e. Total aged years = c + d f. Official unemployment rate = b * 100/c 28,0% 27,9% 26,2% 26,5% 26,7% Source: Labour Force Survey by Statistics South Africa Labour market statistics, based on the Labour Force Survey

Non-agricultural nominal remuneration per worker

Non-agricultural labour productivity

Non-agricultural nominal unit labour cost

Nominal unit labour cost in manufacturing

Headline inflation and CPIX

All-goods production prices

Balance of payments: Current account

Balance on financial account

Financial account

Gross gold and other foreign reserves and international liquidity position of the South African Reserve Bank

Imports covered by reserves

Average net daily turnover in the South African foreign exchange market

Exchange rates of the rand

Growth in M3

Total loans and advances extended to private sector

Money-market interest rates

Yield on long-term government bonds

Yield curves

Turnover in the secondary share market

Share prices - all classes

House prices *

Non-financial public-sector borrowing requirement