gordhan south africa to miss 2016 growth target
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

Gordhan: South Africa to miss 2016 growth target

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleGordhan: South Africa to miss 2016 growth target

Gordhan: South Africa to miss 2016 growth target
Johannesburg - Arab Today

South Africa is likely to avoid a recession in 2016 but will not achieve the 0.9 percent growth target set by the Treasury in February, Finance Minister Pravin Gordhan said on Tuesday.
Gordhan also warned that the economy, which is still trying to undo the inequalities resulting from its racially divided history, could no longer rely on austerity measures to reduce public debt.
Last week, the central bank said it now expected the economy to remain stagnant in 2016, compared with the 0.6 percent growth predicted in May. The International Monetary Fund has also slashed its own forecast to 0.1 percent.
"We're unlikely to remain at that 0.9 percent," Gordhan told reporters on the sidelines of an investment conference and ahead of local elections next week in which the ruling African National Congress is facing tough competition.
"But what we are confident about is that we're not going to get into recession and that as an economy if we start doing the right things and contributing to economic growth and confidence building in our economy we can do better."
Gordhan gave no specifics as to why the forecast had been cut, but the economy has been hit by a drop in commodity prices, while a severe drought has hammered farming output.
All parties have campaigned for the Aug. 3 local elections on promises to tackle high unemployment and deliver better lives. Any defeats in the big population centers for the ANC could damage the party, in power since the end of white-minority rule in 1994, as it prepares for a presidential vote in 2019.
South Africa's GDP growth averaged about 5 percent in the five years before recession hit in 2008. The government has previously suggested growth of 7 percent is needed to significantly slash unemployment.

RATING REVIEW
Despite concerns that growth has remained sluggish since the last recession, Pretoria managed to retain its investment grade credit rating with Moody's, Fitch and S&P earlier this year.
But in a review published last Friday, Fitch cut South Africa's local currency debt rating by one level to just a notch above sub investment grade in what it said was a review of its sovereign rating portfolio across several countries.
"We are still sitting in investment grade as a country which is what we have been working toward with our social partners and working towards as a country, and which we succeeded in doing on the foreign currency rating," Gordhan said.
"The work that we did in the first part of the year will now continue into the second part of the year to ensure that we ... remain an investment graded destination whether it is for local currency or for foreign currency borrowing."
Ratings agencies and investors were worried when President Jacob Zuma changed finance ministers twice less than a week in December, raising doubts about the government's commitment to fiscal prudence.
Zuma reappointed the well-respected Gordhan to the post to calm nervous financial markets. Gordhan was finance minister before from 2009 to 2014.

Source: Arab News

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gordhan south africa to miss 2016 growth target gordhan south africa to miss 2016 growth target

 



Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

GMT 12:04 2017 Wednesday ,27 September

Thomas Cook sees tourists return to Turkey and Egypt

GMT 20:15 2017 Friday ,17 March

Attack On Aid Convoy in South Sudan Kills Two

GMT 17:32 2017 Friday ,15 September

At least 33 dead in Nigeria boat capsize

GMT 17:23 2013 Friday ,24 May

Woolwich: Terrorism or political murder?

GMT 17:52 2017 Tuesday ,18 April

Meningitis kills 10 more people in NW Nigeria

GMT 18:08 2017 Tuesday ,17 October

Norway solar firm signs 2.5 bn-euro deal with Iran

GMT 07:43 2018 Monday ,22 January

Macron boosts Merkel ahead of key coalition vote

GMT 05:32 2016 Monday ,18 April

Australian dollar falls amid oil talk breakdown

GMT 04:45 2016 Thursday ,15 December

UAE Ambassador and Chilean Energy Minister discuss
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle