Busa cautiously optimistic about 2011

There are reasons to be ‘cautiously optimistic’ about the South African economy next year, Business Unity SA (Busa) president Futhi Mtoba said on Wednesday.

‘Although economic recovery this year has been mild and is likely to fall short of three percent growth, the prospects for 2011 are much better,’ she said in a statement.’Against the background of stronger growth forecasts for the global economy, combined with positive domestic economic trends, the South African economy could grow at 3.5 per cent to four per cent next year.’Busa expected interest rates to remain low in 2011, but unemployment to stay high.’… Busa hopes that next year will see the emergence of new net job creation, albeit on a small scale.’Mtoba said the debate about government’s New Growth Path economic strategy would provide ‘an excellent opportunity for business to also contribute to the vision and to its implementation’.’The debate which will eventually take place in Nedlac, National Economic Development and Labour Council, and elsewhere on the government’s proposals for a higher inclusive job rich growth path for South Africa should be informed by cogent and relevant economic realities,’ she said.Next year, Busa would focus on the development of small, medium and micro-enterprises, anti-corruption measures and business ethics, and looking at a job-rich growth path with business at its centre.The business body would also focus on energy security and climate change, business and transformation, infrastructure, and social security and the implementation of the National Health Insurance. – Nampa-Sapa