the state of south africa s real economy contents introduction 1 macro economic performance & outlook a supportive global 2 buoyant domestic 3 inflation and interest rates adjusting to lower level 4 lively demand conditions 5 driving recovery in production sectors 2004 7 including strong fixed investment spending 10 renewed formal employment creation 11 rand is double edged sword 14 all structurally higher growth prospects 17 manufacturing 19 overview manufacturers do not fully benefit 20 value added exports under pressure 21 firm runs out steam 25 disappoints 27 improving 29 lags buoyancy 31 conclusion consistent with agreement between department trade industry dti bureau for research ber this report on sa general that sector particular was compiled firstly provides brief assessment