Global economists Moody’s Economy.com expressed comfort on Friday with the fact that interim President Kgalema Motlanthe had opted not to tinker with South Africa’s economic policy.
“Political uncertainty plagued South Africa this week, though Kgalema Motlanthe’s election as interim president has quelled worries to some degree,” said the economists.
“In his first speech as caretaker president, pending elections next year, Motlanthe vowed that South African economic policies would not change, and that he would intensify job-creation efforts,” they noted.
The global economists point out that a key government priority is lowering the unemployment rate from the current 23% of the labour force to 14% by 2014.
This comes as employment data published this week noted a 0,6% rise in non-farm payrolls during the second quarter, driven by hiring in mining, construction and financial services.
“A particularly high rate of unemployment is a persistent problem that the government aims to tackle through job creation,” concludes Moody’s. — I-net Bridge