Zuma’s departure strengthens prospect of economic recovery
JOBURG – IRR foresees 1.9 per cent economic growth.
Reacting to Jacob Zuma’s resignation as South Africa’s president, Frans Cronje, chief executive at the Institute of Race Relations has predicted a rise of between 1.7 per cent and 1.9 per cent in the country’s economic growth.
“If a compelling case can be made for growth and fiscal prudence in… the Budget Speech to follow, the odds of a further rating downgrade fall to below 50 per cent,” Cronje said.
Cronje is also of the view that the ANC should comfortably gain a majority of above 60 per cent in the next elections. “Maintaining such a majority will be determined in the main [by] the economy.
“The government must aspire to growth rates of above 5 per cent of the GDP over its next term to have any hope of significantly eroding the unemployment rate.”
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