The South African cabinet has emerged from a policy review meeting to declare that indications were that the economic slowdown in the country was starting to reverse.
A statement released after a briefing by President Thabo Mbeki at the Union Buildings in Pretoria, said the meeting “noted the global economic slowdown which has had an impact on our export performance”.
“In this regard, and also as a consequence of high interest rates necessitated in the recent period by the depreciation of our currency and high inflation, the economy experienced a growth rate of 1,5% in the first quarter of 2003.”
“Indications are that the slowdown is starting to reverse as we enter the third quarter.”
The policy review meeting reviewed the state of macro-indicators in the economy, and noted that the balances, represented by fiscal position, balance of payments and inflation “remained sound”.
Cabinet agreed that the challenge “in the coming period is to stay the course of building on export success, expanding service sectors, providing critical economic infrastructure, expanding economic opportunities especially in the areas of SMMEs and micro-credit for productive purposes, strengthening regulation and management of parastatals, boosting investor confidence and implementing projects aimed at immediate job creation, particularly the expanded Public Works Programme”. – I-Net Bridge