SOUTH AFRICAN OUTLOOK SEEN BRIGHTER, LIBERTY LIFE
South Africa's economic recovery
has broadened as favourable terms of a three-year foreign debt
rescheduling accord have given confidence to local business,
Liberty Life Association of Africa Ltd said.
    The major life assurance company said in its first quarter
review that economic activity improved in 1986 with car and
retail sales clearly rising, adding that South Africa's
economic future had "brightened considerably."
    Liberty said pre-conditions existed for further growth in
1987 despite longer term structural problems.
    Short-term interest rates were unlikely to rise markedly in
the near future and unemployment levels were stabilising, the
company said.
    But the report cautioned that South Africa's economy still
faced high inflation and "extremely fragile" consumer and
business confidence which could be upset by political events.
    It also predicted the rand was likely to remain basically a
weak currency despite its nine pct rise in the first quarter to
49.55 U.S. Cts. REUTER
