All data is delayed
See More

Marcus: EU woes trouble SA

Dec 08 2010 12:59

Pretoria - Fiscal austerity programmes in Europe have the potential to derail economic recovery in other regions and are of particular concern because of South Africa's close trading ties with that area, Reserve Bank Governor Gill Marcus said on Wednesday.

In a speech to the bank's shareholders, Marcus also said it was committed to pursuing its objective of price stability within a flexible inflation targeting framework.

"Not only because of their potential to derail the recovery in other regions, but also because of South Africa's close and significant trading relationship with Europe," she said.

Weaker than expected economic data coming from the US as well as sovereign debt problems in the eurozone have been a concern for markets.

The International Monetary Fund expects growth to remain subdued in the developed world, while emerging market economies are forecast to achieve higher growth.

Marcus said South Africa's "growth is expected to average below 3% in 2010".

Although household consumption expenditure is showing signs of recovery, growth in private sector gross fixed capital formation remains "extremely subdued", she said.

The bank's objective of price stability was also highlighted.

Marcus said the bank remained committed to pursuing its objective of price stability within a flexible inflation targeting framework, in the interest of balanced and sustainable economic growth and employment in South Africa.

imf  |  new growth path  |  gill marcus  |  european union  |  sarb


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Myths that funding and red tape are the two biggest challenges faced by emerging companies and entrepreneurs, have been debunked by a report.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Working remotely is:

Previous results · Suggest a vote