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SA growth enviable - Kganyago

Oct 21 2008 19:21 Evan Pickworth

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Cape Town - Director General in the Treasury, Lesetja Kganyago, told I-Net Bridge in an interview on Tuesday that while down, South Africa's GDP projections of 3.7% are "like gold" in the current economic environment.

He added: "The prophets of recession have lost their congregation," explaining that there had been plenty of recession talk in SA, but this was simply not being borne out.

The medium-term budget policy statement drops South Africa's GDP projections in 2009 to just 3% from the 4.2% expected in February as slower global conditions bite.

GDP is projected to grow by about 3.7% in 2008, but to rise to 4.0% in 2010 and 4.3% in 2011. In February, 2008 was seen at 4.0% and 2010 4.6%.

Finance Minister Trevor Manuel noted in his speech that economic growth in the seven richest countries, which make up half the world economic output, may well be zero or negative next year.

"A projection from 4% to 3.7% is like gold," said Kganyago.

Kganyago said his message for investors in South Africa was that the effect of the current global crisis would only be felt in the following year, and "we think we have built the anchors and in the outer two years will be back to 4% and more."

- I-Net Bridge

 
 
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