Economic conditions in South Africa improved in several respects during the year under review.Real gross domestic product increased moderately, after a small negative rate of economic growth had been recorded in 1977/78. This increase was accompanied by a substantial improvement in the country's terms of trade and a decline in real net factor payments to the rest of the world, which resulted in a significantly higher rate of increase in the real gross national product.Most sectors of the economy contributed, to the growth in real economic activity, but the wholesale and retail trade, construction and gold mining can be singled out as sectors of which the real value added either declined or remained at the level reached in the preceding year. The higher level of real economic activity was reflected in an increase in non-agricultural employment. Employment in the private sector, which had declined in the preceding two years, increased moderately. In addition, public sector employment continued to rise, although at a lower rate than in recent years