(Adds details, background)
JOHANNESBURG Jan 26 (Reuters) – South Africa’s
economic growth is “certainly going to be below three percent”
this year due to the impact of a slowdown in the euro zone
economies, Finance Minister Pravin Gordhan said on Thursday.
“Europe is a factor. Europe as a whole is a major trading
partner for South Africa, and for the last 12 to 15 months has
had a major impact on our manufacturing industry and other
export sectors as well,” he said in a transcript of an interview
with CNN in Davos.
The government’s current official growth forecast is 3.4
percent. Gordhan will release updated forecasts at his Feb. 22
budget.
Gordhan’s Davos comments bring his projections in line with
the South African Reserve Bank and the International Monetary
Fund, which this month slashed their forecasts to 2.8 percent
and 2.5 percent respectively.
The government has said it needs GDP growth of 7.0 percent
to make a dent in unemployment, which stands at a quarter of the
labour force.
Gordhan said President Jacob Zuma could announce measures
aimed at boosting employment in his Feb. 9 State of the Nation
address.
“Issues like infrastructure and others are going to play a
key part as we go forward,” he said.
(Reporting by Ed Cropley; Editing by Phumza Macanda)
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