South Africa’s mid-term growth rates look to fall short of government aspirations

By bne IntelliNews October 24, 2010
South Africasmid-term growth rates look to fall short of government aspirations, FinanceMinister Pravin Gordhan said. If recent above-inflation wage hikes do notresult in higher productivity, they could fuel inflation, he said, asgovernment borrowing and interest cost rise. In the Feb-tabled 2010 budget,Treasury forecast 2.3% growth this year. Growth was seen to rise to 3.2% in2011 and 3.6% in 2012, but these figures will change when the mid-term budgetpolicy statement is delivered Oct 27, Gordhan said. Treasurys modelling showedthat if the country sustained 7% growth for 10 years, national income woulddouble and the economy would generate roughly 5.5mn jobs.

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