Zuma clarifies growth rate confusion

The Presidency on Sunday provided clarity on the growth rate of 2.9% quoted by Jacob Zuma in the “January 8 anniversary statement of the governing party‚ the ANC”.

“The 2.9% mentioned in the statement is the growth rate for sub-Saharan Africa‚” it said in a statement‚ noting it had received numerous queries about it. “Growth in Sub-Saharan Africa is estimated to have slowed to 1.4% in 2016 from 3.4% in 2015. For 2017‚ growth in the region is more optimistically projected to rise to 2.9%.” The statement noted that in last year’s Medium Term Budget Policy Statement‚ “the South African government indicated that South Africa is expected to grow at 0.5% in 2016‚ rising to 1.3% in 2017”. “This remains government's official forecast.”

The full statement of the ANC NEC said: “Growth is slow or negative in major developed and developing economies. Investment by private sector is‚ particularly in the developing countries‚ low. Trade between countries has fallen. Growth in Sub-Saharan Africa is estimated to have slowed to 1.4 per cent in 2016 from 3.4 per cent in 2015.

“The ANC is optimistic that the 2017 growth forecast of 2.9 per cent will be achieved.”