This month marks the 56th month of economic growth in South Africa and all indications were that “this growth will continue” says South African Finance Minister Trevor Manuel.
Launching the debate on his budget vote for the National Treasury, he said the Treasury’s most recent data showed that external exposure “is declining”, official reserves “will start rising on a net basis with the elimination of the NOFP” (the net open forward position), and the costs of borrowing will continue to drop “with declining yields and growing confidence towards the emerging market world and South African in particular”.
He predicted that capital inflows would improve “on the back of much improved sovereign ratings on South Africa”.
“While it is premature for us to be talking of radical changes to our economic outlook, we must remain vigilant of the economic environment in which we find ourselves.
“The poor economic situation in Europe and America is in marked contrast to the experience here in South Africa. This month marks the 56th month of economic growth in our country. All indications are that this growth will continue,” he told members of the National Assembly on Monday.
An upbeat Manuel added: “Despite the gradual weakening of the international economy, the South African economy grew strongly in 2002, averaging growth of 3% on the back of encouragingly strong growth in investment. Only with a lag has it started showing signs of weakening, in response to the global performance and higher than expected domestic inflation. This lag confirms the health and resilience of the South African economy.” – I-Net Bridge