Credit stimulates South Africa consumption.

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Retail sales in South Africa grew 7.7 percent in October 2005 and official results for the 2005 Christmas season selling period are likely to be robust as well. But, according to a posting on the iafrica (Cape Town) website-a provider of news and other content-"retail sales are likely to grow more moderately in 2006." The website said that its source for this opinion was an economist at one of South Africa's major banks.

The economist went on to say that the stimulus for much of the "buoyant" consumer activity could be attributed to the availability of low cost credit. There is an expectation that the money supply in South Africa is being gradually reduced, which will in turn increase the cost of borrowing and therefore cause "a winding down in consumer...

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