After attaining an exceptionally high growth rate in the year ended June 1970, the South African economy slowed down during the year ended June 1971 and showed a more moderate rate of growth.This was reflected in a change from an increase of about12per cent in the gross domestic product at current prices in 1969/70 to a rise of 9 per cent in 1970/71.Reduced contributions by the primary sectors mining and agriculture were mainly responsible for this decline.The lower rate of growth was not unexpected as the economy had already been virtually fully extended during 1969/70 when considerable pressure was exerted on the factors of production, particularly on the supply of certain types of labour and capital. Apart from limitations imposed on the growth rate by natural factors in an economy operating close to full capacity, the authorities applied measures to curtail excessive monetary demand and this inevitably contributed to the reduced rate of increase in economic activity.