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A South African blog with an international flavour

Manuel says South Africa will weather the global crises

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Delivering his Medium-Term Budget Policy Statement Speech in parliament yesterday, Finance Minister Trevor Manuel said that South Africa is well positioned to weather the current financial crises.

 

While most of the bigger economies world wide are bracing themselves for negative growth, South Africa’s GDP growth is expected to be 3 % next year, dropping from 5 % over the past four years.

 

Continuing investment in infrastructure will contribute to the momentum of growth in South Africa and will lead to accelerated growth from 2010, when world markets are expected to begin their recovery.

 

“Our low level of debt, especially foreign debt, and our prudent approach to fiscal policy, provide us with the space to adjust our policies to cushion the economy against the worst effects of the global crisis” said Manuel.

 

“The financial stability assessment conducted by the IMF and World Bank during April

and May this year concluded that the financial system in South Africa is fundamentally sound, and noted that our financial sector regulatory framework is sophisticated, modern and effective” added Manuel

 

This means that South Africans can go to sleep at night safe in the knowledge that our Banks will not collapse as we have seen happening overseas.

 

China and Brazil are amongst the nations that will kick start the resources come back, once the financial crises has blown over, leaving South Africa is a position to weather the storm.

 

Food prices have stabilized and the price of oil has dropped, which means that inflation, which hit 13, 6 % in August will also begin to decline in the short term.

 

Maybe the ANC should look at appointing Trevor Manuel as Minister of Safety and Security in an attempt to take us off the top spot on the list of being the most dangerous non war zone in the world

 

 

 

 

Written by admin

October 22, 2008 at 6:51 am

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