Fin24

World Bank sees lower SA growth

2012-07-24 21:46

Johannesburg - Growth in South Africa for 2012 is likely to be lower than earlier expected, the World Bank said on Tuesday, a day after Finance Minister Pravin Gordhan said the government would also lower its forecasts.

"A weakened global economy and dampening of consumer and business confidence are triggering a slowdown in South Africa's growth momentum," the World Bank said in a report, cutting its growth forecast to 2.5% from the 3.1% seen last November.

"South Africa is highly integrated with the global economy, and is therefore susceptible to the ongoing slowdown in the eurozone countries and China, the two principal export destinations for its goods and services," said World Bank country director Asad Alam.

Expansion in Africa's biggest economy is likely to miss the government's current forecast of 2.7%, Gordhan said on Monday, while the central bank sounded a warning about its vulnerability renewed global weakness.

The World Bank report said South Africa's progress toward universal access to basic opportunities had seen mixed results, with impressive gains made in access to primary education, electricity and telecommunications.

But there were still inequalities in the provision of water, sanitation, health insurance and employment opportunities.

"The employment situation is especially challenging for the younger labour force, residents of townships/informal settlements and rural areas, and the non-white segments of the population," it said.

President Jacob Zuma's government has in the last few years grappled with often violent protests in poor townships by blacks bitter that they still have poor access to water, sanitation and housing 18 years after the end of white minority rule.

The government has singled out an unemployment rate of 25% as one of its major challenges, and economic growth remains far below the 7% needed to significantly slash the jobless rate.

"The policy challenge is to find a way to break this vicious, self-perpetuating cycle of inequality in South Africa," the World Bank report said.

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Comments
  • vmeiring1 - 2012-07-24 22:22

    Hey, and what about the tax payers money being stolen???? "No money for jobs" Tell the people how many projects is being shelved due to the "corruption" (affirmative word for stealing), and the impact it has on unemployment. And worst of all, nothing is being done about it.

  • andrew.worrall.5 - 2012-07-25 06:38

    Now if we take that R2billion ear marked for the presidents plane and the R40million unaccounted for by municipalities and inject that into the needs of the people...

  • Mike - 2012-07-25 06:41

    This report by the World Bank highlights the effect of maladministration of South Africa financial resources by the ANC regime. The wholesale theft of public funds impacts directly on their power base, namely the poor under privileged black citizen. The tragedy is that as a direct result of this wholesale theft of resources by an ANC regime that enforces class and racial discrimination as part of its policy, is the non education of the black SA youth. This policy ensures that their power base remains uneducated, unenlightened and uninformed perpetuating the misery, and at the same time making them easily persuaded that it is not their government that is responsible but the previous regime and white capitalists.

  • lungile.ndyibithi - 2012-07-25 11:52

    This calls for a national debate in order to come up with a turnaround strategy, lol. I wonder who determines recalling of government since the ANC recalls the President, we need people with good governance skills, not corrupt and selfish, in my view we need a leader who is under 60yrs of age and not going to Pension in the next 8yrs. Someone who comes not to represent the interest of any party bt the nation.

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