The debt challenges in the US and parts of Europe will have the effect of “dampening growth and creating greater uncertainty” both in SA and around the world, Finance Minister Pravin Gordhan says.
Addressing an Internal Auditors' Summit on Monday, Gordhan described the current global economic environment as “dynamic, tumultuous, and challenging.”
“We face challenging economic times,” Gordhan said.
“Diagnoses are many, but there's consensus that global growth must be restored,” Gordhan said, adding that while debt “must be reduced,” this was supposed to be done in a manner that did not compromise growth.
He said while developed economies were facing sovereign debt problems, emerging markets were continuing to grow strongly.
“Investments will flow South in the next few years,” Gordhan said.
Gordhan said South Africa should “be proud” of its fiscal sovereignty that it has been able to obtain.
“We do not depend on the IMF to sustain ourselves,” he said.
The minister called for a “credible tax compliance structure” in order to avoid a reversal of the country's fiscal capability. - I-Net Bridge