SA must 'continue with stimulus'

Johannesburg - South Africa must continue with the stimulus package it has adopted as a response to the financial crisis, Minister of Finance Pravin Gordhan said on Sunday.

He was addressing a briefing at OR Tambo airport after returning from the G20 Finance Ministers' meeting in London. "South Africa must continue with its infrastructure spending,"

Gordhan said, adding that stimulus packages globally had to remain in place until recovery was secured.

"If countries withdraw their stimulus packages now, there will be a setback," he said.

Gordhan said G20 countries, however, remained committed to the formulation of a credible exit strategy which would be underpinned by effective co-ordination between fiscal and monetary authorities, international co-operation and communication among countries regarding policy actions.

"Exits out of the stimulus packages will differ from country to country," the Finance Minister said.

He added that there was "cautious hope" for recovery.

"There are indications that the green shoots are real as we see India, Japan, France and Germany working their way out of technical recession."

While some countries were recovering well, others were lagging. "Asia is doing well but Africa is a mixed picture," Gordhan said.

- Sapa