SA raises growth forecasts

CAPE TOWN – South Africa’s economy will grow by an average of over four per cent over the next three years, driven by investment spending by the government and its agencies, the National Treasury said yesterday.

The government aims to raise the country’s annual economic growth rate to six per cent by 2010 from around four per cent now to help reduce high levels of poverty and halve steep unemployment – officially estimated at 26,5 per cent. “The focus is clearly on accelerating growth.Accelerated growth expands the resource envelope.It makes a redistribution of wealth and income possible through the process of development, and not at its expense,” Finance Minister Trevor Manuel told parliament.In its Medium Term Budget Policy Statement, the Treasury forecast gross domestic product (GDP) growth at an average 4,4 per cent this year, moderating to 4,2 per cent in 2006 before gathering steam to reach 4,4 per cent in 2007 and then 4,8 per cent.In the 2005 budget, GDP growth was seen averaging 4,3 per cent this year, slowing down to 3,8 per cent in 2006 and rising to 4,4 per cent in 2007.Growth in Africa’s largest economy averaged 2,9 per cent between 1996 and 2003, quickening substantially from the previous decade – but not enough to address unemployment which is seen as a scourge behind a host of social ills.The economy expanded by 3,7 per cent in 2004, but Manuel said he expected these estimates to be revised upwards once the full survey data has been incorporated into the national accounts.Statistics South Africa will revise growth data in November.- Nampa-Reuters”The focus is clearly on accelerating growth.Accelerated growth expands the resource envelope.It makes a redistribution of wealth and income possible through the process of development, and not at its expense,” Finance Minister Trevor Manuel told parliament.In its Medium Term Budget Policy Statement, the Treasury forecast gross domestic product (GDP) growth at an average 4,4 per cent this year, moderating to 4,2 per cent in 2006 before gathering steam to reach 4,4 per cent in 2007 and then 4,8 per cent.In the 2005 budget, GDP growth was seen averaging 4,3 per cent this year, slowing down to 3,8 per cent in 2006 and rising to 4,4 per cent in 2007.Growth in Africa’s largest economy averaged 2,9 per cent between 1996 and 2003, quickening substantially from the previous decade – but not enough to address unemployment which is seen as a scourge behind a host of social ills.The economy expanded by 3,7 per cent in 2004, but Manuel said he expected these estimates to be revised upwards once the full survey data has been incorporated into the national accounts.Statistics South Africa will revise growth data in November.- Nampa-Reuters