Gordhan worries about downgrade, 0% growth
26 July 2016
Johannesburg – South Africa can achieve 1.5% growth, but that is not enough, according to Finance Minister Pravin Gordhan.
Speaking at the EY and Johannesburg Chamber of Commerce and Industry (JCCI) business breakfast in Sandton on Tuesday, Gordhan highlighted the importance of achieving inclusive growth. Gordhan has recently returned from the first National Development Bank (NDB) Annual General Meeting held in Shanghai, China, last week.
“The country is sitting at 0.58% of GDP and needs to hit 1.5% as a target,” said Gordhan. Within the short term the government and the private sector need to work to keep the economy above 0% and avoid a credit downgrade in December. Once that is done, the country can focus on what needs to be done afterwards," said Gordhan.
Improving infrastructure is crucial for the development of South Africa and the African continent. It encourages investment and creates job opportunities, he said.