• Is Cell C sustainable?

    Is the mobile operator another African Bank in the making, asks Gugu Lourie.

  • Alliances that work

    Mutually adding value secures the employer-employee relationship, says Ian Mann.

  • Without prejudice

    We all need to fight the ugly bigotry that’s made news recently, says Mandi Smallhorne.

Loading...
See More

Marcus: EU woes trouble SA

Dec 08 2010 12:59 Reuters

Related Articles

Rate cut welcome but caution urged

IMF downbeat on SA growth

Marcus: Growth plan won't weaken Sarb

Patel: State won't regulate salaries

Business wants clarity on state's role

Busa warns on wages cap

 

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

NEXT ON FIN24X

 

Latest Articles

Invest for Income Read More...
15 Investment Tips for 2015 Read More...
Tax-free saving accounts are coming Read More...
Which generator is right for you? Read More...
 
 

Read Fin24’s Comments Policy

24.com 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
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Money Clinic

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