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Gordhan confident SA will avoid recession

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The South African economy will avoid a recession in 2016 and often will stop in a low-growth trap, says finance minister Pravin Gordhan.

Speaking to the sidelines in the Nedgroup Investments Summit, he was quoted saying National Treasury would revise its 0.9% growth forecast in time for the Medium Term Budget Policy Statement in October.

“I think we’ve said often times already that we’re unlikely to live at 0.9%….We’ll give you the Treasury numbers in October at the moment when our forecasts will be created for public consumption. But what we are confident about is we’re not obtaining right recession,” Gordhan said. ?

The minister’s comments come as soon as the IMF cut its growth projection for your South African economy to 0.1% from 0.6%. The South African Reserve Bank would not expect the economy to nurture in 2016, with governor Lesetja Kganyago proclaiming that the domestic economy is set in a low-growth trap.

“That is the reality. The globe is set in the lowest growth trap; Africa is set in the minimum growth trap and so are we at this point soon enough. That is certainly why we are telling every one of our social partners also to, for example, entrepreneurs in Nigeria: we’ve got to begin doing things differently,” he explained.

Gordhan called on businesses to decide to the economy and spend money on South Africa.

“Today, Nigeria still is designed with a good set of returns specific niche market but also, comparatively speaking, a fairly stable investment climate notwithstanding some of the immediate challenges we face,” he added.

“Our focus is actually on what do you really change that growth dynamic and just what are the tools we now have in our hands C whether are fiscal tools, monetary tools, structural reform tools, but the majority of importantly confidence and concrete investment tools C and in what ways should we attract these questions way in which we can create more jobs, create more an answer to teenagers to get trained and involved and absorb them in the economy,” he stated in relationship with doing things differently. ?

He added that growth doesn’t appear while using click of your finger and this upshot of stakeholder efforts would manifest covering the next year.

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