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IMF gives SA the thumbs-up

May 19 2010 10:39

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Johannesburg -  The South African government performed "really well" during the recent global financial crisis, the International Monetary Fund (IMF) said on Wednesday.

"South Africa is a classic case of a country building buffers in the good times and using those buffers when the crisis hit," IMF economist Abebe Selassie told a briefing in Sandton on his organisation's outlook for sub-Saharan Africa for 2010.

One of the least noticed aspects of the global downturn had been the resilience of the sub-Saharan Africa region, he said.

"Previous global economic slowdowns had a much more damaging impact, but this time the global downturn was much sharper but the dislocation was far less."

Selassie said that as the global financial crisis started to unfold, economic policies were directed quickly and effectively towards ameliorating the impact of the external shocks.

"Most governments that anticipated the slowdown made plans to accelerate public spending growth and on the monetary policy side, policy interest rates were also reduced."

Selassie predicted that South Africa's economy would grow by 2.6% for 2010.

"But I will be going back to Washington and revising it. It'll probably be a quarter of a percentage point higher. So growth will be expected to come in around 3% for South Africa in 2010," he said.

  - Sapa

 
 
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