Correctional Services said that “matters are under control” at Johannesburg’s Sun City Prison on Wed.
THE deficit on SA's current account widened more than expected in the first quarter, partly due to problems in the euro zone that curbed exports, the Reserve Bank said yesterday.
The bank said in its June quarterly bulletin the balance on the current account widened to 4,6percent of GDP in the first quarter, compared with a 2,9percent shortfall in Q4, which was a four-and-a-half year low.
The main drag on the current account balance was the trade balance, which swung back into deficit as exports fell.
"Although the recent recovery in global economic activity supported the revival in international trade volumes, somewhat weaker macroeconomic conditions in certain euro member countries impeded export volumes," the bank said.
The euro zone is SA's largest trading partner, covering about a third of domestic exports.
Reserve Bank chief economist Monde Mnyande said the current account deficit is expected to deteriorate further to around 4,9percent of GDP for 2010, compared to a 4,0percent shortfall in 2009.
The bank said a stronger rand also weighed on exports. The rand's value firmed by 3,9percent in the first quarter against 15 currencies of SA's most important trading partners.
Imports improved slightly as a faster pace of economic growth in the first quarter raised demand.
Economic expansion quickened to 4,6percent in the first quarter, after the economy exited its first recession since 1992 late last year.
"The growth outlook may gain further momentum from the recovery in the manufacturing sector," Mnyande said, declining to say what the central bank expected from Q2 gross domestic product figures.
On spending, households helped to lift gross domestic expenditure to 12,1percent on an annualised basis compared with 4,9percent in Q4, aided partly by lower interest rates and slowing inflation.
Mnyande said "adverse effects related to job losses and high electricity prices could still constrain spending by households".
State-owned enterprises such as Eskom and Transnet supported gross fixed capital formation, a trend that Mnyande said should continue.
Gross fixed capital formation rose 0,2percent on an annualised basis in Q1, after three quarters of decline.
But private sector investment was still falling although the rate of contraction had eased at -0,7percent compared with 2,3percent annualised in Q4. - Reuters