THE EASTERN CAPE had the fastest-growing economy in South Africa between 1998 and 2001. The province recorded real growth of 13,5 per cent over the period compared with 8,6 per cent for the rest of South Africa. Eastern Cape Development Corporation economist Mike Lewis says official data released by Statistics South Africa "suggests that the Eastern Cape entered a strong growth phase in 1998 at least in terms of real growth of provincial economic output". The largest increase was in real agricultural output, which includes forestry and fishing. This sector grew by 62 per cent, compared to 11 per cent for South Africa as a whole. Lewis suggests that the main reasons for this are to be found in the substantial increase in the number of game farms as well as growth in wool, forestry, horticulture, and agricultural exports generally. He says while the manufacturing sector "struggled" between 1995 and 1998 when real manufacturing output in the province declined by five per cent, from 1998 to 2001 the manufacturing sector in the Eastern Cape grew by 21 per cent in real terms compared with nine per cent for South Africa as a whole. Only Limpopo's manufacturing sector with 32 per cent showed higher growth but Lewis notes that this was from a "much smaller industrial base as Limpopo's manufacturing sector is only one-fifth of that of the Eastern Cape". The statistics also reveal that between 1995 and 2001 at constant 1995 prices the value added in the construction industry in the Eastern Cape increased from R860-million to R1,07-billion. For value added in the wholesale and retail trade hotels and restaurants increased from R6,9-billion to R8,2-billion, and value added in transport and communication grew from R3,5-billion to R5,2-billion. Economic Affairs, Environment and Tourism MEC Enoch Godongwana said the figures indicated that even without the industrial development zones, there had been significant growth above the national average that refuted the popular image of the Eastern Cape as a basket case. "The figures are extremely exciting and illustrate the strength of the provincial economy based on its coastal location and strength of export growth. And,he added, "they are not just figures for one year but indicate sustained and sustainable growth. "The figures exclude both the Coega and East London IDZs and they are clearly going to provide a dramatic boost for the provincial economy from next year." He said substantial growth was also likely to result from developments in forestry while agricultural production was also poised for significant growth.