In December 2003 the Minister of Finance reported that he expected to collect 11% more VAT in 2004 than in 2003, the final figure was 18%. He had also forecast collecting an additional 2.5% from property transactions, and received 33% more. In a similar vein, anticipated customs duties receipt increases were not 13% as forecast, but 35%. These are positive figures in themselves, but they also provide the South African government with the resources fully to implement the infrastructure expansion and employment encouragement plans that they have.
In 2004 the South African motor sector sold 20% more cars than in 2003. However in December 2004, the figure was 34% up on a year previously - a recent two-month average was 28%.
The South African Reserve Bank SARB reduced interest rates by 6% over an 18 month period. This was a great encouragement to asset markets, like property, and also the stock investment market. Inflation fell below 4%, well below wage increases. The Rand has strengthened from R13 = 1$ in late 2001, to below R6 = 1$ in 2004 and SARB foreign currency reserves nearly doubled to over 15bn$ (R90bn).
Lower interest rates also made possible an enormous boost to the purchases of durable and semi-durable consumer goods. Retail spending volumes advanced by 12% in December 2004. Household indebtedness increased relative to disposable income, but in no startling manner. With asset values also rising, household balance sheets did not become overburdened in 2004. The winning of the 2010 World Cup Soccer bid in May 2004 was another 'feel good' factor (although there are fears concerning South Africa's current capacity to develop all that is necessary, in time).
Share prices gained a respectable 22% overall growth in 2004. Many companies saw their profits soar, with the RMB/BER business confidence index recording a reading of 88%, just 3 points shy of the all-time gold boom record of 1981. Many businesses were tempted into expanding their production capacities, now that imported capital goods were becoming cheaper, while also hiring more labour.