Why is the ANC aiming for 2-3 percent growth? We can do much better
Earlier this morning Minister of Finance, Pravin Gordhan, told an ANC breakfast that government will be working towards maintaining the 2 to 3 percent economic growth rate of recent years.
This is unacceptable. We should be targeting much higher growth rates. That is the only way to create the jobs we need to lift hundreds of thousands of South Africans from poverty.
The Democratic Alliance (DA) believes we should be targeting a growth rate of 8%. Next month we will be releasing our plan for South Africa to achieve 8% growth.
This is in line with growth potential in other developing economies. Growth rates between 2 and 3 percent are what the struggling Western economies are producing. Instead, we should be positioning ourselves to grow at rates similar to those of our peer countries.
A growth rate of between 2 and 3 percent will not be enough to pull people out of poverty. Such a rate will only maintain the status quo.