SA GDP better than expected

[Mila]

Again, your lack of understanding of economic indicators just scintillates in this post..
They talk of quarterly growth, then annual growth... If Q1 was -5% and Q2 was 0%, Q3 was 3% and Q4 4%, that's an annual growth of 0.5%.

Also, we won't get Q1 results of 2010 well until near the end of Q2.. There's no conspiracy of distortion of results like you point out..

StatsSA might be wrong (which it isn't), the World Bank ain't, and the both concur SA has grown.

World bank you say... And that was that article?

Good. I agree youre right. I'm just a dimm wit. Do not worry about me.

 

[jimmyj]

i guess we should be happy

but the unemployment rate is still so high...the question remains to be asked:

which new industries on the grassroots level, can uplift the masses?

is there a new economy to be formed that has never been seen?

what can the poor do?

 

[davemc]

I'm going to quote this again and advocate for a facepalm emotion for MyBB. I'm sorry but I can't accentuate enough how retarded this post was =/

And for the rest of you, since I posted a link to somewhere that refutes your obtuse ignorant claims, I'm guessing none of you will reply and this thread will die? Thought so. Just checking.

Lulz.
Very impressive.

You're actually sitting there and telling me (a layman) that my post compared completely different measurements, and is therefore nonsensical.

This is fair comment, and I concede to that point.

However, you failed to correct me.

You could have placed the budget deficit and the GDP figures into a clearer, better worded post.

Though, if you had actually done that, I bet that my incoherent post and your much improved post would achieve the same goal, that of sending out the clear message:

Don't forget about the country's deficit when speaking about GDP, especially when it appears that much of the GDP growth is being funded by the deficit in an unsustainable manner.

 

[milomak]

There are sometimes times when you have to wonder how the got to certain numbers.
And you do know that there was more than one mistake that they made.

the inflation numbers of a few years back is the only one that really sticks to mind

Don't forget about the country's deficit when speaking about GDP, especially when it appears that much of the GDP growth is being funded by the deficit in an unsustainable manner.

what do you base the above comment on?

 

[McSack]

An honest question here...
Is our current account defecit dependant to a certain extent on government spending? Logically I would think that there are two main contributors - How much revenue is collected through taxes and how much is then disbursed through spending by goverment.
Looking at it it from this perspective we know less taxes have been collected. We also know government has spent more. Now if government spending forms a fairly large proportion of the GDP "growth" (according to reports around 30% of the "growth") then surely we must look at GDP and current account defecit as part of the bigger picture.

Correct me if I'm wrong in some of my assumptions here

 

[milomak]

There are two types of deficits (and conversely surpluses):

Budget deficit – What the government spends over what it takes in in taxes
Current account deficit – Money flows leaving the country over those that come into the country

So infrastructure spending by government will impact the budget deficit. Equipment bought offshore by private companies to build the infrastructure will impact the current account deficit.

edit: Both deficits are not necessarily a bad thing. Increased budget deficit on the back of infrastructure spending means more roads, hospitals, schools etc, an investment in the country which, all being equal, should help increase the country’s ability to grow in the future. Increased budget deficit on the back of on the back of spending on minister’s cars not so good.

Running a country account deficit means that on a net basis, the country owes the other nations in the world. This will typically put pressure on the currency to weaken. The currency will remain stable or even strengthen if other flows (eg into the stock market and bond market) is greater than the current account deficit. As you can see, in a country that is dependant on exports; running a slight current account deficit is not necessarily a bad thing.

 

[boramk]

Lulz.
Very impressive.

You're actually sitting there and telling me (a layman) that my post compared completely different measurements, and is therefore nonsensical.

This is fair comment, and I concede to that point.

However, you failed to correct me.

You could have placed the budget deficit and the GDP figures into a clearer, better worded post.

Though, if you had actually done that, I bet that my incoherent post and your much improved post would achieve the same goal, that of sending out the clear message:

Don't forget about the country's deficit when speaking about GDP, especially when it appears that much of the GDP growth is being funded by the deficit in an unsustainable manner.

Even though I've explained why you were wrong in later posts, let me try again:

So, we've loaned 7.3% or our GDP and got an improvement of 3.2 of our GDP in the last quarter.

If I am earning R4000 a month.
And I then take a loan for R1,000,000.
And I then pay myself R4292.
I can then claim that I have increased my income by 7.3 percent as well, and blithely ignore the fact that I have to pay back the R1,000,000.

The South African economy is worth $277 Billion in 2008 Dollars. A 1% increase in our GDP means that our GDP is sitting at $279.77 Billion. The 3.2% increase in GDP means that our GDP grew to $285.864.
However, our current account is at a deficit, meaning we are importing more than we are exporting, and that stands at 7.3% of our GDP, meaning we imported $20.221 more than exports. Understand?

See what I mean? Two COMPLETELY different things... Whilst the 7.3% represent our deficit size in comparison to GDP, the 3.2% if our GROWTH in GDP. See why your analogy with our current account deficit and GDP to income and interest fails cock and excites retards like Mila?

And as milomak said, a deficit is not a bad thing, same as why a surplus is not necessarily a good thing either.

 

[boramk]

Good. I agree youre right. I'm just a dimm wit. Do not worry about me.

Won't be. You're a retard, its just fun sometimes trying to educate people like you..

Get a sense of humour genius boy, and some friends and maybe a sex life.

Sorry, didn't realise your original post was intended to give out lolz ^__^ funnnny GUY

 

[BBSA]

Even though I've explained why you were wrong in later posts, let me try again:



The South African economy is worth $277 Billion in 2008 Dollars. A 1% increase in our GDP means that our GDP is sitting at $279.77 Billion. The 3.2% increase in GDP means that our GDP grew to $285.864.
However, our current account is at a deficit, meaning we are importing more than we are exporting, and that stands at 7.3% of our GDP, meaning we imported $20.221 more than exports. Understand?

See what I mean? Two COMPLETELY different things... Whilst the 7.3% represent our deficit size in comparison to GDP, the 3.2% if our GROWTH in GDP. See why your analogy with our current account deficit and GDP to income and interest fails cock and excites retards like Mila?

And as milomak said, a deficit is not a bad thing, same as why a surplus is not necessarily a good thing either.

LOL dude, davemc was referring to the Budget deficit and not the current account deficit?

Time to take that chip of your shoulder

 

[boramk]

LOL dude, davemc was referring to the Budget deficit and not the current account deficit?

Time to take that chip of your shoulder

My apologies if he was, but iirc, the current account deficit is at 7.3% GDP. Is our budget deficit also 7.3% GDP?
And even then BBSA, that still isn't tomatoes with tomatoes... Budget deficit against GDP growth?

 

[BBSA]

My apologies if he was, but iirc, the current account deficit is at 7.3% GDP. Is our budget deficit also 7.3% GDP?
And even then BBSA, that still isn't tomatoes with tomatoes... Budget deficit against GDP growth?

I agree, there is a problem with his logic. If you invest R100 today you not going to get a return of R100 immediately.

PS:
The budget deficit for 2009/10 is estimated at 7.3 percent of gross domestic product

 

[boramk]

Current Account Deficit 7.3%

Looks like both were at 7.3%

 

[BBSA]

Current Account Deficit 7.3%

Looks like both were at 7.3%

Correct, but remember he said "you loan 7.3% of GPD", surly lending is a function of the budget.

 

[boramk]

You don't loan from the Budget.... You go over the allocated amount creating a deficit.

 

[BBSA]

You don't loan from the Budget....

Of cause not, don't be silly. You declare it in your budged that is why it is called a budget deficit.

 

[boramk]

That's not what I meant, sorry for the equivocal post; you can't loan 7.3% of any GDP, and by that you don't LOAN at all... It's a budget, a whole bunch of different figures are given to different government departments, not loaned to them... Therefore I don't see where he got the logic from his first post
You get a budget deficit when you go over the x amount you are allocated...

 

[BBSA]

That's not what I meant, sorry for the equivocal post; you can't loan 7.3% of any GDP, and by that you don't LOAN at all... It's a budget, a whole bunch of different figures are given to different government departments, not loaned to them... Therefore I don't see where he got the logic from his first post
You get a budget deficit when you go over the x amount you are allocated...

If you go over your budget then you must go and borrow the shortfall. The budget deficit is actually the amount which government must loan to balance the books.

If you have a budget and the income is R1000 and your expenses is R1200, how are you going to makeup the shortfall? You must go and borrow the R200, it does not just fall out of the air.

 

[milomak]

public borrowing is actually somewhere in the region of 11% of GDP.

 

[BBSA]

public borrowing is actually somewhere in the region of 11% of GDP.

Yes, the 7.3% is only the debt of the National government and does not include parastatals, provincial and local government's debt