SA Economic Indicators: for the month of August 2013

SA Economic Indicators for the month of July 2013 © 2013 Trade Intelligence SA Economic Indicators Interest Rates Updated September 2013 Source: South African Reserve Bank 2008/2009 Recession Drop after 20 months at previous level of 9%

SA Economic Indicators for the month of July 2013 © 2013 Trade Intelligence SA Economic Indicators Interest Rates COMMENTARY Bank Lending Rate in South Africa remained unchanged at 8.5% in July of 2013 from 8.5% in June of 2013 −Repo rate 5.0% −Prime 8.5% Among the reasons for the decision were: −The battling Rand −Increasing labour concerns −Inflation surpassing the Reserve Bank’s upper target of 6% −An increasing current account deficit (SA is spending more than it is making) “There are a number of critical domestic issues that are contributing to the vulnerability of the economy that need to be urgently addressed.” Reserve Bank Governor Gill Marcus The central bank also cut its forecast for economic growth to below 2%, down from 2,4% in May 2013, as a result of the depreciating Rand, rising wage and salary costs and electricity constraints. This forecast is well below the 2.5% expansion in South Africa's economy last year South Africa's Reserve Bank is likely to keep lending rates at current four-decade lows well into next year as it balances inflation risks from a weaker currency against sluggish economic growth

SA Economic Indicators for the month of July 2013 © 2013 Trade Intelligence tel fax Kim Furber | Online Support Helga Altenroxel |Retail Analyst Kate Shirley | Independent Retail Analyst Maryla Masojada |Head Research Disclaimer These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects. Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein. TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein. TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy. * TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence Other Sources ABSA Agri Trends; BizCommunity; Bloomberg; Business Day; Business Report; Department of Agriculture, Forestry and Fisheries; Financial Mail; Finweek; Fin 24; The Mercury; Reuters; Stanlib, Sunday Times; Sunday Tribune; The Times ; thesouthafrican.com