During the year ended June 1970, the South African economy achieved a very high rate of growth as reflected in an increase of well over 12 per cent in the gross domestic product at current prices, despite a shortage of labour and certain types of capital. The upswing in economic activity stemmed from a further substantial rise in total domestic demand which exceeded the domestic supply of goods and services and exerted considerable pressure on resources, particularly on the supply of skilled and semi-skilled labour. This led to price rises at a rate which may be considered unduly high for South Africa.Moreover, although a high growth rate was achieved, the distribution of resources was such that most of the increase in activity was concentrated in fixed property development and in the provision of financial and other services, while sectors responsible for the production of goods did not expand satisfactorily.