Moving South Africa s Mining Sector Towards Beneficiation

Size: px
Start display at page:

Download "Moving South Africa s Mining Sector Towards Beneficiation"

Transcription

1 Moving South Africa s Mining Sector Towards Beneficiation Presentation for: Centre for Japanese Studies GIBS, Johannesburg 6 August 2012 By Dr Iraj Abedian Pan-African Investment & Research Services (Pty) Ltd.

2 Outline 1. Trends in the SA Mineral Beneficiation & manufacturing sector 2. Manufacturing Sectoral multiplier effects 3. Impact of a Sustained Boost in Manufacturing 4. Concluding remarks: Policy Implications Slide # 2

3 Trends in the South African Mineral Beneficiation and Manufacturing Sector

4 Increasing manufacturing output but declining manufacturing contribution to GDP (a) Contribution of manufacturing to GDP (%) (b) Growth of manufacturing output (%) Downward trend due to Apartheid policies Upward trend due to democracy Downward trend due to poor macro policies Contribution to GDP Trend Growth of manufacturing output Trend Slide # 4

5 Sectoral multiplier effects: Manufacturing remains a critical sector in the South African economy

6 A R1 investment in manufacturing results in a R1.13 increase in GDP R 1.79 R 1.13 R 0.81 R 0.72 R 0.60 R 0.49 R 0.03 R 0.03 Agriculture Manufacturing Construction Wholesale & Retail Output multiplier Mining Finance Transport & Communication Electricity Source: PAIRS Slide # 6

7 A R1 million investment in manufacturing translates into 3 decent and sustainable additional jobs Agriculture Wholesale & Retail Manufacturing Construction Finance Mining Transport & Communication Electricity Employment multiplier (units) Source: PAIRS Slide # 7

8 A R1 investment in manufacturing results in a R0.13 increase in exports receipts R 0.22 R 0.15 R 0.13 R 0.11 R 0.09 R 0.07 R 0.07 R 0.01 Agriculture Transport & Communication Manufacturing Construction Wholesale & Retail Exports multiplier Mining Finance Electricity Source: PAIRS Slide # 8

9 A R1 investment in manufacturing results in a R0.35 increase in fiscal revenue R 0.56 R 0.35 R 0.26 R 0.23 R 0.19 R 0.16 R 0.01 R 0.01 Agriculture Manufacturing Construction Wholesale & Retail Fiscal revenue multiplier Mining Finance Transport & Communication Electricity Source: PAIRS Slide # 9

10 Impact of a sustained boost in manufacturing An extended boost in manufacturing will significantly impact on sustainable employment and other macroeconomic variables

11 Pan-African Study: Simulation scenarios 1. First scenario: Manufacturing output grows at 3.4% per annum (average forecast growth rate of manufacturing output between 2010 and 2020) 2. Second scenario: Manufacturing output grows at 10% per annum (average estimate of the minimum sustainable pro-poor GDP growth that will restore the momentum of the sector, given that the highest growth recorded between was 9.3% in 1981) Slide # 11

12 10-year cumulative effects of the economy-wide impact of an increase in manufacturing output 3.4% growth over 10 years (baseline scenario) 10% growth over 10 years (sustainable scenario) Change from baseline to sustainable scenario Output R184 billion R537 billion % Employment 158, , % Investment R116 billion R339 billion % Household consumption R136 billion R398 billion % Real wages R61 billion R177 billion % Fiscal revenue R62 billion R182 billion % Exports R52 billion R151 billion % Imports R102 billion R297 billion % Exchange rate (R/$) -1.43% -4.08% % Consumer inflation -0.58% -1.66% % Source: PAIRS Slide # 12

13 Impact on sectoral output (R billion) 3.4% growth over 10 years (baseline scenario) 10% growth over 10 years (sustainable scenario) Change from baseline to sustainable scenario Manufacturing % (Shock amount) (Shock amount) Mining % Agriculture % Wholesale & retail trade % Finance % Construction % Transport & Communication % Electricity % Source: PAIRS Slide # 13

14 Employment effects (no. of jobs) 3.4% growth over 10 years (baseline scenario) 10% growth over 10 years (sustainable scenario) Change from baseline to sustainable scenario Manufacturing 61, , % Mining 8,700 25, % Agriculture 2,500 7, % Wholesale & retail trade 39, , % Finance 16,600 47, % Construction 4,300 12, % Transport & Communication 2,800 8, % Electricity 7,400 21, % Source: PAIRS Slide # 14

15 Real wages effects (R billion) 3.4% growth over 10 years (baseline scenario) 10% growth over 10 years (sustainable scenario) Change from baseline to sustainable scenario Manufacturing % Mining % Agriculture % Wholesale & retail trade % Finance % Construction % Transport & Communication % Electricity % Source: PAIRS Slide # 15

16 Manufacturing Expansion Needs Mineral Beneficiation

17 Mineral Beneficiation A Narrow/Mining Perspective Mining & Production of Ore Conversion of ore into bulk tonnage intermediate goods (e.g. metals & alloys) Conversion of the intermediate goods into a refined product for use by small & sophisticated Industries Source: PAIRS Slide # 17

18 Beneficiation Stages A Narrow/Mining Perspective

19 Beneficiation Value Chain An Economic Integrated Perspective Supply chain industries providing equipment & services to the mining sector Extraction & mining activities including processing Industrial applications, utilization & downstream activities Related industries & multiplier effects Source: PAIRS Slide # 19

20 Core vs. Integrated Mineral Beneficiation Source: PAIRS Slide # 20

21 Core vs. Integrated Mineral Beneficiation Note: An integrated mineral beneficiation is the necessary platform for human resource and skills development. Source: PAIRS Slide # 21

22 A Significant Business Reality: Mineral Beneficiation & Re-industrialisation are Inseparable... Mineral Beneficiation Re- Industrialisation Slide # 22

23 Policy Implications (I) 1. Mineral beneficiation and re-industrialization of SA economy are inseparable. 2. SA has the potential to re-industrialize at a scale larger than the 1950s and 1960s! 3. Successful re-industrialization and mineral beneficiation require inspired and sustained leadership of both business and government. 4. Left to the market forces, SA s mineral beneficiation and re-industrialization are unlikely to materialize. Slide # 23

24 Policy Implications (II) 4. SA is set to achieve sustainable growth of 10% in its mineral beneficiation and manufacturing output with significant impacts on employment, real wages and other macroeconomic variables. This requires: a) An urgent removal of much procrastinated infrastructural bottlenecks in energy, water and other regulatory fields. b) An appropriate framework for financing of the required infrastructure. c) A Multi-stakeholder Implementation Coordination Forum to ensure binding roadmap for synchronized action plan. 5. The re-industrialization of SA requires a close integration of mineral beneficiation and manufacturing expansion. Slide # 24

25 Thank you for your attention Tel: /7 Fax: Slide # 25

Service Delivery & Recession: Financing Options & Challenges INCA Summer School on Building Local Government Capacity Johannesburg 26 October 2009

Service Delivery & Recession: Financing Options & Challenges INCA Summer School on Building Local Government Capacity Johannesburg 26 October 2009 Service Delivery & Recession: Financing Options & Challenges INCA Summer School on Building Local Government Capacity Johannesburg 26 October 2009 Dr Iraj Abedian Pan-African Investment & Research Services

More information

Facilitating further Minerals Beneficiation in South Africa

Facilitating further Minerals Beneficiation in South Africa Facilitating further Minerals Beneficiation in South Africa Presentation to GIBS Forum By Roger Baxter, Senior Executive, Chamber of Mines of South Africa, 22 May 2013 1 PRESENTATION OUTLINE Broad business

More information

BENEFICIATION ECONOMICS: A VIEW FROM THE TRENCHES

BENEFICIATION ECONOMICS: A VIEW FROM THE TRENCHES BENEFICIATION ECONOMICS: A VIEW FROM THE TRENCHES Diversifying a Mineral Based Economy Neale Baartjes Mineral Economics Consultant MINERAL ECONOMIC RESEARCH? PLATFORMS Labour Intensive Industries FOCUS

More information

INDUSTRIALIZE AFRICA. Luxembourg Trade Mission October 2 nd, 20189

INDUSTRIALIZE AFRICA. Luxembourg Trade Mission October 2 nd, 20189 INDUSTRIALIZE AFRICA Luxembourg Trade Mission October 2 nd, 20189 Dr. Abdu Mukhtar Director for Industrial and Trade Development African Development Bank Africa is industrializing but still lags behind

More information

Chapter 16: National Economy Introduction

Chapter 16: National Economy Introduction 16 National Economy 16.1 Introduction This chapter considers the Simandou Project s impacts on the national economy. The chapter considers the Project as a whole and does not distinguish between mine,

More information

THE AD (AGGREGATE DEMAND) / AS (AGGREGATE SUPPLY) MACRO MODEL

THE AD (AGGREGATE DEMAND) / AS (AGGREGATE SUPPLY) MACRO MODEL THE AD (AGGREGATE DEMAND) / AS (AGGREGATE SUPPLY) MACRO MODEL Again, we visit the supply and demand framework. However, when applied to Macroeconomics, we use the following terms in setting up our graph:

More information

Harmony Bambanani MINERALS COUNCIL POSITION: ESKOM TARIFF INCREASE APPLICATION AND IRP

Harmony Bambanani MINERALS COUNCIL POSITION: ESKOM TARIFF INCREASE APPLICATION AND IRP Harmony Bambanani MINERALS COUNCIL POSITION: ESKOM TARIFF INCREASE APPLICATION AND IRP Henk Langenhoven, 1 February 2019 Mining sector contribution to the SA economy Sources: SA Reserve Bank, Statistics

More information

The Evolving Role of Trade in Asia: Opening a New Chapter. Fall 2018 REO Background Paper

The Evolving Role of Trade in Asia: Opening a New Chapter. Fall 2018 REO Background Paper The Evolving Role of Trade in Asia: Opening a New Chapter Fall 2018 REO Background Paper Outline Trade Tensions and Spillovers: Spotlight on Asia Gains from Liberalization 2 Trade tensions have escalated.

More information

Key opportunities and challenges facing the South African Mining Industry

Key opportunities and challenges facing the South African Mining Industry Key opportunities and challenges facing the South African Mining Industry Presentation to the Portfolio Committee on Finance 20 February 2007 Cape Town Outline of presentation Mining remains a key pillar

More information

Canada. How does Travel & Tourism compare to other sectors? GDP. Size. Share. Canada GDP Impact by Industry. Canada GDP Impact by Industry

Canada. How does Travel & Tourism compare to other sectors? GDP. Size. Share. Canada GDP Impact by Industry. Canada GDP Impact by Industry Canada Niagara Falls in Ontario Agriculture Automotive Banking Chemicals Communications Education Financial Mining Other Service Manufacturing Manufacturing Services Retail (without wholesale) Whole How

More information

LABOUR MARKET CLOSURES AND CGE ANALYSIS

LABOUR MARKET CLOSURES AND CGE ANALYSIS LABOUR MARKET CLOSURES AND CGE ANALYSIS Elspeth Wilson Department of Treasury and Finance The views expressed are those of the author and not of the Department of Treasury and Finance Long Run Labour Market

More information

National Minimum Wage in South Africa: Quantification of Impact

National Minimum Wage in South Africa: Quantification of Impact National Minimum Wage in South Africa: Quantification of Impact Asghar Adelzadeh, Ph.D. Director and Chief Economic Modeller Applied Development Research Solutions (ADRS) (asghar@adrs-global.com) Cynthia

More information

Intermediate Macroeconomics, Sciences Po, Answer Key to Problem Set 1

Intermediate Macroeconomics, Sciences Po, Answer Key to Problem Set 1 Intermediate Macroeconomics, Sciences Po, 2014 Zsófia Bárány Answer Key to Problem Set 1 1. Production and expenditure approaches to GDP: Consider three firms: firm A, a mining enterprise; firm B, a steelmaker;

More information

Government Expenditure

Government Expenditure Fiscal Policy Part I Much fiscal policy is implemented, not through spending increases, but through tax credits and other so-called tax expenditures. The markets should respond to them as they do spending

More information

SECTION SIX: Labour Demand Forecasting Model

SECTION SIX: Labour Demand Forecasting Model PAGE 115 SECTION SIX: Labour Demand Forecasting Model 6.1. INTRODUCTION The demand for labour up to 2010 according to the SIC sectors have been estimated through the development of a labour demand model.

More information

India. How does Travel & Tourism compare to other sectors? GDP. Size. Share. India GDP Impact by Industry. India GDP Impact by Industry

India. How does Travel & Tourism compare to other sectors? GDP. Size. Share. India GDP Impact by Industry. India GDP Impact by Industry India Taj Mahal in Agra Agriculture Automotive Banking Chemicals Communications Education Financial Mining Other Service Manufacturing Manufacturing Services Retail (without wholesale) Total How does compare

More information

Economics 302 Intermediate Macroeconomic

Economics 302 Intermediate Macroeconomic Economics 302 Intermediate Macroeconomic Theory and Policy (Spring 2010) Lecture 28-29 May 3-5, 2010 slide 0 Outline Why is the long run important? The determinants of economic growth Full employment and

More information

(Illicit) Financial Flows in the Mining Sector in South Africa: Implications for Industrialisation. Asanda Fotoyi

(Illicit) Financial Flows in the Mining Sector in South Africa: Implications for Industrialisation. Asanda Fotoyi (Illicit) Financial Flows in the Mining Sector in South Africa: Implications for Industrialisation Asanda Fotoyi Introduction Industrialisation ensures that manufacturing becomes a source of value to an

More information

Seventh Multi-year Expert Meeting on Commodities and Development April 2015 Geneva

Seventh Multi-year Expert Meeting on Commodities and Development April 2015 Geneva Seventh Multi-year Expert Meeting on Commodities and Development 15-16 April 2015 Geneva The Africa Mining Vision & AU Commodity Strategy: Implications for Policy By Charles Akong United Nations Economic

More information

ECON 212: ELEMENTS OF ECONOMICS II Univ. Of Ghana, Legon Lecture 8: Aggregate Demand Aggregate Supply Dr. Priscilla T. Baffour

ECON 212: ELEMENTS OF ECONOMICS II Univ. Of Ghana, Legon Lecture 8: Aggregate Demand Aggregate Supply Dr. Priscilla T. Baffour ECON 212: ELEMENTS OF ECONOMICS II Univ. Of Ghana, Legon Lecture 8: Aggregate Demand Aggregate Supply Dr. Priscilla T. Baffour Sections 1. Relaxing a Temporal Assumption Price Level is no longer fixed.

More information

Summary of Opinions at the Monetary Policy Meeting 1,2 on December 19 and 20, 2018

Summary of Opinions at the Monetary Policy Meeting 1,2 on December 19 and 20, 2018 Not to be released until 8:50 a.m. Japan Standard Time on Friday, December 28, 2018. December 28, 2018 Bank of Japan Summary of Opinions at the Monetary Policy Meeting 1,2 on December 19 and 20, 2018 I.

More information

Chapter 13. Aggregate Demand and Aggregate Supply

Chapter 13. Aggregate Demand and Aggregate Supply Chapter 13 Aggregate Demand and Aggregate Supply 1 Output and Price Level Figure 1 Two-Way Relationship Between Output and Price Level Aggregate Demand Curve Price Level Real GDP Aggregate Supply Curve

More information

Economic Impacts of Low Crude Prices on the Canadian Economy

Economic Impacts of Low Crude Prices on the Canadian Economy Canadian Energy Research Institute Economic Impacts of Low Crude Prices on the Canadian Economy Dinara Millington Canadian Energy Research Institute Ryder Scott Canada Reserves Conference May 10, 2016

More information

Namibia Mid Year Budget Review 2017/18. Standard Bank presentation by Ms Naufiku Hamunime, Economist, Standard Bank

Namibia Mid Year Budget Review 2017/18. Standard Bank presentation by Ms Naufiku Hamunime, Economist, Standard Bank Namibia Mid Year Budget Review 2017/18 Standard Bank presentation by Ms Naufiku Hamunime, Economist, Standard Bank EMERGING OUT OF RECESSION: THE CASE FOR INDUSTRY MID YEAR BUDGET REVIEW November 2017

More information

Appendix 4.2 Yukon Macroeconomic Model

Appendix 4.2 Yukon Macroeconomic Model Appendix 4.2 Yukon Macroeconomic Model 2016 2035 14 July 2016 Revised: 16 March 2017 Executive Summary The Yukon Macroeconomic Model (MEM) is a tool for generating future economic and demographic indicators

More information

Macroeconomic challenges to Uganda's post 2015 development strategy

Macroeconomic challenges to Uganda's post 2015 development strategy Macroeconomic challenges to Uganda's post 2015 development strategy Peter Richens Technical Advisor, Ministry of Finance, Planning and Economic Development Uganda Expert Group Meeting: Macroeconomic challenges

More information

The contribution of British American Tobacco South Africa to the Western Cape economy

The contribution of British American Tobacco South Africa to the Western Cape economy The contribution of British American Tobacco South Africa to the Western Cape economy A study conducted by Quantec Research, 2016 Contents 2 The contribution of British American Tobacco South Africa to

More information

Using the World Industry Service to Stress Test Credit Portfolios. November 2008

Using the World Industry Service to Stress Test Credit Portfolios. November 2008 Using the World Industry Service to Stress Test Credit Portfolios November 2008 Agenda Outline for for stress-testing the country and industry components of credit portfolios Introduction to Models, Tools

More information

Fiscal Impact Analysis of the North Carolina Rural Job Creation Fund

Fiscal Impact Analysis of the North Carolina Rural Job Creation Fund Fiscal Impact Analysis of the North Carolina Rural Job Creation Fund Prepared for: Stonehenge Capital Company, LLC. Copyright 2017 All Rights Reserved Economic Impact Group, LLC. Dacula, GA 30019 March

More information

FETP/MPP8/Macroeconomics/Riedel. General Equilibrium in the Short Run II The IS-LM model

FETP/MPP8/Macroeconomics/Riedel. General Equilibrium in the Short Run II The IS-LM model FETP/MPP8/Macroeconomics/iedel General Equilibrium in the Short un II The -LM model The -LM Model Like the AA-DD model, the -LM model is a general equilibrium model, which derives the conditions for simultaneous

More information

What is Macroeconomics?

What is Macroeconomics? Introduction ti to Macroeconomics MSc Induction Simon Hayley Simon.Hayley.1@city.ac.uk it What is Macroeconomics? Macroeconomics looks at the economy as a whole. It studies aggregate effects, such as:

More information

Chapter 10 3/19/2018. AGGREGATE SUPPLY AND AGGREGATE DEMAND (Part 1) Objectives. Aggregate Supply

Chapter 10 3/19/2018. AGGREGATE SUPPLY AND AGGREGATE DEMAND (Part 1) Objectives. Aggregate Supply Chapter 10 AGGREGATE SUPPLY AND AGGREGATE DEMAND (Part 1) Objectives Explain what determines aggregate supply in the long run and in the short run Explain what determines aggregate demand Explain how real

More information

Aggregate Supply and Aggregate Demand

Aggregate Supply and Aggregate Demand Aggregate Supply and Aggregate Demand ECO 301: Money and Banking 1 1.1 Goals Goals Specific Goals Be able to explain GDP fluctuations when the price level is also flexible. Explain how real GDP and the

More information

The Economy Wide Benefits of Increasing the Proportion of Students Achieving Year 12 Equivalent Education

The Economy Wide Benefits of Increasing the Proportion of Students Achieving Year 12 Equivalent Education January 2003 A Report prepared for the Business Council of Australia by The Economy Wide Benefits of Increasing the Proportion of Students Achieving Year 12 Equivalent Education Modelling Results The

More information

Base Titanium s total economic and tax contributions in Kenya

Base Titanium s total economic and tax contributions in Kenya Base Titanium s total economic and tax s in Kenya Prepared for Base Titanium March 2015 Executive Summary This report quantifies the economic and tax benefits of Base Titanium s Kwale Mineral Sands Project

More information

Gambling with policy

Gambling with policy Gambling with policy The economic impacts of removing gaming machines from clubs and pubs Prepared for Gaming Technologies Association Centre for International Economics Canberra & Sydney November 2008

More information

GOAL 6 FIRMS PARTICIPATING IN FOREIGN EXPORT TRADE

GOAL 6 FIRMS PARTICIPATING IN FOREIGN EXPORT TRADE GOAL 6 FIRMS PARTICIPATING IN FOREIGN EXPORT TRADE By 2028, New Brunswick will have at least 1,080 firms participating in foreign export trade. Status: NOT PROGRESSING Current Situation As outlined in

More information

FINANCIAL INCLUSION IN SADC. Ezulwini Swaziland 7 December, 2017

FINANCIAL INCLUSION IN SADC. Ezulwini Swaziland 7 December, 2017 FINANCIAL INCLUSION IN SADC Ezulwini Swaziland 7 December, 2017 Introduction Financial inclusion or inclusive financing is the delivery of appropriate safe, accessible and quality financial services at

More information

A comparison of economic impact analyses which one works best? Lukas van Wyk, Melville Saayman, Riaan Rossouw & Andrea Saayman

A comparison of economic impact analyses which one works best? Lukas van Wyk, Melville Saayman, Riaan Rossouw & Andrea Saayman A comparison of economic impact analyses which one works best? Lukas van Wyk, Melville Saayman, Riaan Rossouw & Andrea Saayman Introduction Problem overview Model comparison Empirical comparison Findings

More information

CHAMBER OF MINES PRESENTATION ON THE DRAFT CARBON TAX BILL

CHAMBER OF MINES PRESENTATION ON THE DRAFT CARBON TAX BILL CHAMBER OF MINES PRESENTATION ON THE DRAFT CARBON TAX BILL Presentation on the draft Carbon Tax Bill to the Standing Committee on Finance Parliament, Cape Town 14 March 2018 Presentation outline Introduction

More information

Accounts, Indicators and Policy Use with 2008 SNA Framework

Accounts, Indicators and Policy Use with 2008 SNA Framework Accounts, Indicators and Policy Use with 28 SNA Framework Regional Seminar on Developing a Programme for the Implementation Programme of the 28 SNA and the Implementation Strategy for the SEEA Central

More information

GROSS DOMESTIC PRODUCT, THIRD QUARTER OF 2018 (PRELIMINARY DATA)

GROSS DOMESTIC PRODUCT, THIRD QUARTER OF 2018 (PRELIMINARY DATA) GROSS DOMESTIC PRODUCT, THIRD QUARTER OF 2018 (PRELIMINARY DATA) In the third quarter of 2018 Gross Domestic Product (GDP) 1 at current prices amounts to 29 822 million BGN. In Euro terms GDP is 15 248

More information

Diversifying Africa s Largest Economy PAPER PRESENTED BY DR.OKECHUKWU E.ENELAMAH HONOURABLE MINISTER OF INDUSTRY, TRADE & INVESTMENT

Diversifying Africa s Largest Economy PAPER PRESENTED BY DR.OKECHUKWU E.ENELAMAH HONOURABLE MINISTER OF INDUSTRY, TRADE & INVESTMENT Diversifying Africa s Largest Economy PAPER PRESENTED BY DR.OKECHUKWU E.ENELAMAH HONOURABLE MINISTER OF INDUSTRY, TRADE & INVESTMENT AT 4 TH WTO CHINA ACCESSION ROUNDTABLE. PROTOCOL I will like to thank

More information

Fiscal Measures for Reversing Fiscal Dis-equilibrium. Presented by. Hon. Prof. Mthuli Ncube Minister of Finance and Economic Development

Fiscal Measures for Reversing Fiscal Dis-equilibrium. Presented by. Hon. Prof. Mthuli Ncube Minister of Finance and Economic Development Zimbabwe Fiscal Measures for Reversing Fiscal Dis-equilibrium Presented by Hon. Prof. Mthuli Ncube Minister of Finance and Economic Development 1 October 2018 Harare 1 Introduction 1. The economy is showing

More information

The Impact of Electricity Price Increases and Eskom s Six-Year Capital Investment Programme on the South African Economy

The Impact of Electricity Price Increases and Eskom s Six-Year Capital Investment Programme on the South African Economy The Impact of Electricity Price Increases and Eskom s Six-Year Capital Investment Programme on the South African Economy Note: This report is the final research project commissioned by Eskom entitled:

More information

Dr Willem J. De Beer, Chief Operations Officer, EDI Holdings (Pty) Ltd, South Africa 23November 2010

Dr Willem J. De Beer, Chief Operations Officer, EDI Holdings (Pty) Ltd, South Africa 23November 2010 Dr Willem J. De Beer, Chief Operations Officer, EDI Holdings (Pty) Ltd, South Africa 23November 2010 The process of dealing with the EDI maintenance backlog: Can we catch up? Electricity Supply Chain GENERATION

More information

Objectives AGGREGATE DEMAND AND AGGREGATE SUPPLY

Objectives AGGREGATE DEMAND AND AGGREGATE SUPPLY AGGREGATE DEMAND 7 AND CHAPTER AGGREGATE SUPPLY Objectives After studying this chapter, you will able to Explain what determines aggregate supply Explain what determines aggregate demand Explain macroeconomic

More information

GROSS DOMESTIC PRODUCT, SECOND QUARTER OF 2017 (PRELIMINARY DATA)

GROSS DOMESTIC PRODUCT, SECOND QUARTER OF 2017 (PRELIMINARY DATA) GROSS DOMESTIC PRODUCT, SECOND QUARTER OF 2017 (PRELIMINARY DATA) In the second quarter of 2017 Gross Domestic Product (GDP) 1 at current prices amounts to 24 149 million BGN. In Euro terms GDP is 12 347

More information

Chapter 22. Adding Government and Trade to the Simple Macro Model. In this chapter you will learn to. Introducing Government. Government Purchases

Chapter 22. Adding Government and Trade to the Simple Macro Model. In this chapter you will learn to. Introducing Government. Government Purchases Chapter 22 Adding Government and Trade to the Simple Macro Model In this chapter you will learn to 1. Describe the relationship between national income and government purchases and tax revenues. 2. Describe

More information

The main assumptions underlying the scenario are as follows (see the table):

The main assumptions underlying the scenario are as follows (see the table): . PROJECTIONS The projections for the Italian economy presented in this Economic Bulletin update those prepared as part of the Eurosystem staff macroeconomic projections, which were based on information

More information

Chapter 13. Aggregate Demand and Aggregate Supply. Output and Price Level. Deriving the Aggregate Demand Curve. The Aggregate Demand Curve

Chapter 13. Aggregate Demand and Aggregate Supply. Output and Price Level. Deriving the Aggregate Demand Curve. The Aggregate Demand Curve Output and Figure 1 Two-Way Relationship Between Output and Aggregate Demand Curve Chapter 13 Aggregate Demand and Aggregate Supply Price Level Aggregate Supply Curve Real GDP 1 2 The Aggregate Demand

More information

Practice Test 1: Multiple Choice

Practice Test 1: Multiple Choice Practice Test 1: Multiple Choice 1. If aggregate planned expenditure exceeds real GDP A. actual inventories decrease below their target. B. firms are not maximizing their profits. C. planned consumption

More information

GROSS DOMESTIC PRODUCT, FIRST QUARTER OF 2017 (PRELIMINARY DATA)

GROSS DOMESTIC PRODUCT, FIRST QUARTER OF 2017 (PRELIMINARY DATA) GROSS DOMESTIC PRODUCT, FIRST QUARTER OF 2017 (PRELIMINARY DATA) In the first quarter of 2017 GDP at current prices amounts to 20 066 million BGN. In Euro terms GDP is 10 260 million Euro or 1 445 euro

More information

Economic Fundamentals in Australia MacGregor and Salla Sample responses to questions contained in Activity Centre: Unit 3 Outcome 3

Economic Fundamentals in Australia MacGregor and Salla Sample responses to questions contained in Activity Centre: Unit 3 Outcome 3 Economic Fundamentals in Australia MacGregor and Salla Sample responses to questions contained in Activity Centre: Unit 3 Outcome 3 Question 1 a) Tariffs and quotas are both examples of means by which

More information

Introduction to the monetary approach to business cycles

Introduction to the monetary approach to business cycles Diploma Macro Paper 2 Monetary Macroeconomics Lecture 1 Introduction to the monetary approach to business cycles Mark Hayes slide 1 Outline monetary vs intertemporal macroeconomics how the aggregate demand

More information

2017 FIRST QUARTER ECONOMIC REVIEW

2017 FIRST QUARTER ECONOMIC REVIEW 2017 FIRST QUARTER ECONOMIC REVIEW MAY 2017 0 P a g e Overview The performance of the economy in the first quarter of 2017 was on a positive trajectory with annual growth projected to be about 3.9 % from

More information

CANADA MONTANA MONTANA S PROFILE NOTES. Clare Annett

CANADA MONTANA MONTANA S PROFILE NOTES. Clare Annett MONTANA S PROFILE Economic Indicators Gross domestic product (GDP): US$46.0 billion (2016) GDP per capita: US$44,100 (2016) Population: 1.0 million (2016) Merchandise exports to Montana: 22 nd among the

More information

The Gross Economic Impact of the Proposed Angas Zinc Mine on the Strathalbyn Economy

The Gross Economic Impact of the Proposed Angas Zinc Mine on the Strathalbyn Economy SOUTH AUSTRALIAN CENTRE FOR ECONOMIC STUDIES ADELAIDE & FLINDERS UNIVERSITIES The Gross Economic Impact of the Proposed Angas Zinc Mine on the Strathalbyn Economy Final Report Report commissioned by Terramin

More information

Suggested Solutions to Assignment 3

Suggested Solutions to Assignment 3 ECON 1010C Principles of Macroeconomics Instructor: Sharif F. Khan Department of Economics Atkinson College York University Summer 2005 Suggested Solutions to Assignment 3 Part A Multiple-Choice Questions

More information

EXPERIAN BUSINESS DEBT INDEX (BDI) RESULTS FOR Q2 2017

EXPERIAN BUSINESS DEBT INDEX (BDI) RESULTS FOR Q2 2017 EXPERIAN BUSINESS DEBT INDEX (BDI) RESULTS FOR Q2 2017 Business debt conditions still holding up despite recession The Experian Business Debt Index (BDI) rose moderately in the second quarter of 2017 compared

More information

South Africa s Platinum Mining Crisis

South Africa s Platinum Mining Crisis South Africa s Platinum Mining Crisis Presentation : 30 January 2014. Roger Baxter Chief Operating Officer Presentation Outline The Global Platinum Environment The South African Platinum Mining Industry

More information

What Determines Aggregate Demand?

What Determines Aggregate Demand? What Determines Aggregate Demand? AS-AD model: emphasis on aggregate supply Now we are going to study a model that sheds more light on aggregate demand We will see how the two models are related Keynesian

More information

GROSS DOMESTIC PRODUCT, FIRST QUARTER OF 2018 (PRELIMINARY DATA)

GROSS DOMESTIC PRODUCT, FIRST QUARTER OF 2018 (PRELIMINARY DATA) GROSS DOMESTIC PRODUCT, FIRST QUARTER OF 2018 (PRELIMINARY DATA) In the first quarter of 2018 Gross Domestic Product (GDP) 1 at current prices amounts to 21 479 million BGN. In Euro terms GDP is 10 982

More information

The strategic benefits to Governments in supporting exploration

The strategic benefits to Governments in supporting exploration The strategic benefits to Governments in supporting exploration Richard Schodde Managing Director, Adjunct Professor, Centre for Exploration Targeting, UWA 2018 NSW Minerals Council Exploration Forum 7

More information

Living Standards Have Peaked This Decade

Living Standards Have Peaked This Decade Living Standards Have Peaked This Decade Janine Dixon Centre of Policy Studies, Victoria University June 2015 It will take an unlikely combination of strong productivity growth and falling real wages to

More information

Essential Policy Intelligence

Essential Policy Intelligence 1: Methodology Non-Technical Summary By Dan Ciuriak, Jingliang Xiao and Ali Dadkhah The standard tool to analyze trade agreements is a computable general equilibrium (CGE) model. We employ a dynamic version

More information

OECD UNITED NATIONS JOINT OECD/ESCAP MEETING ON NATIONAL ACCOUNTS System of National Accounts: Five Years On. Bangkok, 4-8 May 1998

OECD UNITED NATIONS JOINT OECD/ESCAP MEETING ON NATIONAL ACCOUNTS System of National Accounts: Five Years On. Bangkok, 4-8 May 1998 OECD UNITED NATIONS ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC JOINT OECD/ESCAP MEETING ON NATIONAL ACCOUNTS 1993 System of National

More information

Medium-Term Debt Management Strategy (MTDS)

Medium-Term Debt Management Strategy (MTDS) Medium-Term Debt Management Strategy (MTDS) Ministry of Finance The purpose of this document is to identify the optimal medium term debt management strategy for the Fiscal Years (FY) 2015-16 through 2017-18

More information

Multipliers: User s guide

Multipliers: User s guide Federal Planning Bureau Economic analyses and forecasts Multipliers: User s guide Final demand multipliers are a standard application of Leontief s traditional input output model. They measure the response

More information

The Contribution of GMH Elizabeth Operations to the South Australian economy and the Potential Impacts of Closure

The Contribution of GMH Elizabeth Operations to the South Australian economy and the Potential Impacts of Closure The Contribution of GMH Elizabeth Operations to the South Australian economy and the Potential Impacts of Closure UPDATED ASSESSMENT 2013 Barry Burgan and John Spoehr November 2013 THE CONTRIBUTION OF

More information

National Development Banks: Improving domestic public resource mobilisation (focusing on South Africa s IDC)

National Development Banks: Improving domestic public resource mobilisation (focusing on South Africa s IDC) National Development Banks: Improving domestic public resource mobilisation (focusing on South Africa s IDC) Jorge Maia Head: Research and Information Intergovernmental Group of Experts on Financing for

More information

Macroeconomic impacts of limiting the tax deductibility of interest expenses of inbound companies

Macroeconomic impacts of limiting the tax deductibility of interest expenses of inbound companies Macroeconomic impacts of limiting the tax deductibility of interest expenses of inbound companies Prepared on behalf of the Organization for International Investment June 2015 (Page intentionally left

More information

China Construction Bank Corporation, Johannesburg Branch

China Construction Bank Corporation, Johannesburg Branch China Construction Bank Corporation, Johannesburg Branch Pillar 3 Disclosure (for the year ended 31 December 2014) Builds a better future PUBLIC Content Page 1. Overview 3 2. Financial performance 3 3.

More information

Continental Free Trade Area

Continental Free Trade Area African Union Continental Free Trade Area Questions and answers January 2018 1. How can the Continental Free Trade Area provide business opportunities that will enhance industrialization in Africa, in

More information

Summary of Opinions at the Monetary Policy Meeting 1,2 on March 14 and 15, 2019

Summary of Opinions at the Monetary Policy Meeting 1,2 on March 14 and 15, 2019 Not to be released until 8:50 a.m. Japan Standard Time on Tuesday, March 26, 2019. March 26, 2019 Bank of Japan Summary of Opinions at the Monetary Policy Meeting 1,2 on March 14 and 15, 2019 I. Opinions

More information

Ndiame Diop, Lead Economist & Economic Advisor World Bank Indonesia BKPM, December 16, 2013

Ndiame Diop, Lead Economist & Economic Advisor World Bank Indonesia BKPM, December 16, 2013 Ndiame Diop, Lead Economist & Economic Advisor World Bank Indonesia BKPM, December 16, 2013 Overview of recent economic developments Framing the policy choices for the current account and growth in 2014

More information

economic growth QUARTERLY DATA SERIES

economic growth QUARTERLY DATA SERIES ISSUE 8 December 2016 PROVINCIAL economic growth QUARTERLY DATA SERIES introduction The Quarterly Economic Review is a statistical release compiled by the Eastern Cape Socio Economic Consultative Council

More information

Uncertainties within South Africa s goal of universal access to electricity by 2012

Uncertainties within South Africa s goal of universal access to electricity by 2012 Uncertainties within South Africa s goal of universal access to electricity by 2012 B Bekker, CT Gaunt Department of Electrical Engineering, University of Cape Town, South Africa A Eberhard Graduate School

More information

Speaking Points for the Gaidar Forum Economic Perspective for Europe and Russia

Speaking Points for the Gaidar Forum Economic Perspective for Europe and Russia Speaking Points for the Gaidar Forum Economic Perspective for Europe and Russia It is my pleasure and honor to take part in this panel to discuss the economic perspectives for Europe and Russia. Given

More information

Chapter 23. Aggregate Supply and Aggregate Demand in the Short Run. In this chapter you will learn to. The Demand Side of the Economy

Chapter 23. Aggregate Supply and Aggregate Demand in the Short Run. In this chapter you will learn to. The Demand Side of the Economy Chapter 23 Aggregate Supply and Aggregate Demand in the Short Run In this chapter you will learn to 1. Explain why an exogenous change in the price level shifts the AE curve and changes the equilibrium

More information

ECON 3010 Intermediate Macroeconomics Final Exam

ECON 3010 Intermediate Macroeconomics Final Exam ECON 3010 Intermediate Macroeconomics Final Exam Multiple Choice Questions. (60 points; 3 pts each) #1. An economy s equals its. a. consumption; income b. consumption; expenditure on goods and services

More information

What do we need to be able to lend to the breadth of the affordable market?

What do we need to be able to lend to the breadth of the affordable market? Financing affordable housing approaches at scale What do we need to be able to lend to the breadth of the affordable market? Michael K. Mugabi, Executive Director Housing Finance Bank Content The Macro-environment

More information

Presented By Allister Hodge Caribbean Centre for Monetary Studies Conference, October, Jamaica

Presented By Allister Hodge Caribbean Centre for Monetary Studies Conference, October, Jamaica Presented By Allister Hodge Caribbean Centre for Monetary Studies Conference, 02-04 October, Jamaica At this juncture it is fitting to revisit the topic of public investment, growth and fiscal sustainability

More information

ECON 212 ELEMENTS OF ECONOMICS II

ECON 212 ELEMENTS OF ECONOMICS II ECON 212 ELEMENTS OF ECONOMICS II Session 10 AGGREGATE DEMAND AND AGGREGATE SUPPLY Lecturer: Dr. Priscilla Twumasi Baffour; Department of Economics Contact Information: ptbaffour@ug.edu.gh College of Education

More information

Downloads from this web forum are for private, non commercial use only. Consult the copyright and media usage guidelines on

Downloads from this web forum are for private, non commercial use only. Consult the copyright and media usage guidelines on Econ 3x3 www.econ3x3.org A web forum for accessible policy relevant research and expert commentaries on unemployment and employment, income distribution and inclusive growth in South Africa Downloads from

More information

UNIT 4 READING GUIDES CHAPTERS 16-20

UNIT 4 READING GUIDES CHAPTERS 16-20 UNIT 4 READING GUIDES CHAPTERS 16-20 Take your own notes on the reading guides. You WILL be able to use them on the test BUT ONLY IF YOU DO ALL OF THEM. These will be turned in after the UNIT 4 TEST for

More information

Developments in inflation and its determinants

Developments in inflation and its determinants INFLATION REPORT February 2018 Summary Developments in inflation and its determinants The annual CPI inflation rate strengthened its upward trend in the course of 2017 Q4, standing at 3.32 percent in December,

More information

Experian Business Debt Index (BDI) Results. Q4 2016

Experian Business Debt Index (BDI) Results. Q4 2016 Experian Business Debt Index (BDI) Results. Q4 2016 Analysis Econometrix +27 11 483 1421 ilsef@econometrix.co.za Enquiries Experian +27 11 799 3400 BDIreport@experian.co.za EXPERIAN BUSINESS DEBT INDEX

More information

ECA. An empirical assessment of the African Continental Free Trade Area modalities on goods. November 2018

ECA. An empirical assessment of the African Continental Free Trade Area modalities on goods. November 2018 ECA An empirical assessment of the African Continental Free Trade Area modalities on goods November 2018 The Economic Commission for Africa (ECA) recently conducted a new economic modelling analysis to

More information

Long Run vs. Short Run

Long Run vs. Short Run Long Run vs. Short Run Long Run: A period long enough for nominal wages and other input prices to change in response to a change in the nation s price level. The Basic Model of Economic Fluctuations Two

More information

Impacts of Potential Aluminum Tariffs on the U.S. Economy

Impacts of Potential Aluminum Tariffs on the U.S. Economy Impacts of Potential Aluminum Tariffs on the U.S. Economy June 2017 Project Team Jeffrey E. Eisenach, Ph.D. David Harrison, Jr., Ph.D. Dylan Hogan Taylor Chin Prepared for Emirates Global Aluminium NERA

More information

Table of contents. Acknowledgements... Explanatory notes... Executive summary...

Table of contents. Acknowledgements... Explanatory notes... Executive summary... Table of contents Acknowledgements... Explanatory notes... Executive summary... iii iv v Chapter I Global economic outlook... 1 Prospects for the world economy in 2014-2015... 1 Global growth continues

More information

CANADA SPAIN SPAIN S PROFILE NOTES. Florian Richard

CANADA SPAIN SPAIN S PROFILE NOTES. Florian Richard SPAIN S PROFILE Economic Indicators Gross domestic product (GDP) at purchasing power parity (PPP): US$1.7 trillion (2016) GDP per capita at PPP: US$36,300 (2016) Population: 46.4 million (2016) International

More information

Name: Intermediate Macroeconomic Theory II, Fall 2009 Instructor: Dmytro Hryshko Final Exam (35 points). December 8.

Name: Intermediate Macroeconomic Theory II, Fall 2009 Instructor: Dmytro Hryshko Final Exam (35 points). December 8. Name: Intermediate Macroeconomic Theory II, Fall 2009 Instructor: Dmytro Hryshko Final Exam (35 points). December 8. 1. (5 points) Suppose that the only shocks in the economy are changes in the assessments

More information

Forward looking statement

Forward looking statement The PGM market conundrum 16 November 2016 Deutsche Bank ADR Virtual Investor Conference Forward looking statement 2 Certain statements contained in this presentation other than the statements of historical

More information

Macroeconomics CHAPTER 7. Tracking the Macroeconomy

Macroeconomics CHAPTER 7. Tracking the Macroeconomy Macroeconomics CHAPTER 7 Tracking the Macroeconomy PowerPoint Slides by Can Erbil 2006 Worth Publishers, all rights reserved What you will learn in this chapter: How economists use aggregate measures to

More information

COMMUNIQUÉ SADC MACROECONOMIC PEER REVIEW MECHANISM PANEL MEETING. Gaborone Botswana, 7 July 2016

COMMUNIQUÉ SADC MACROECONOMIC PEER REVIEW MECHANISM PANEL MEETING. Gaborone Botswana, 7 July 2016 COMMUNIQUÉ SADC MACROECONOMIC PEER REVIEW MECHANISM PANEL MEETING Gaborone Botswana, 7 July 2016 1. SADC Ministers responsible for Finance and Investment and the Central Bank Governors constituting the

More information

162,951,560 GOOD PRACTICES 1.9% 0.8% 5.9% INTEGRATING THE SDGS INTO DEVELOPMENT PLANNING BANGLADESH POPULATION ECONOMY US$

162,951,560 GOOD PRACTICES 1.9% 0.8% 5.9% INTEGRATING THE SDGS INTO DEVELOPMENT PLANNING BANGLADESH POPULATION ECONOMY US$ GOOD PRACTICES INTEGRATING THE SDGS INTO DEVELOPMENT PLANNING BANGLADESH In this brief: Country context The whole of society approach Institutional arrangements for achieving the SDGs The Development Results

More information

MCCI ECONOMIC OUTLOOK. Novembre 2017

MCCI ECONOMIC OUTLOOK. Novembre 2017 MCCI ECONOMIC OUTLOOK 2018 Novembre 2017 I. THE INTERNATIONAL CONTEXT The global economy is strengthening According to the IMF, the cyclical turnaround in the global economy observed in 2017 is expected

More information

Australian. Manufacturing. Sector. Executive Summary. Impacts of new and retained business in the

Australian. Manufacturing. Sector. Executive Summary. Impacts of new and retained business in the Executive Summary Impacts of new and retained business in the Australian Since 1984, ICN has monitored the economic impact of its services and the benefits to the economy Manufacturing when a local supplier

More information