London - South Africa's economic growth won't reach its 2.7 percent target this year, but will not fall below 2 percent, the country's finance minister said on Monday.
“Our aspiration to reach 2.7 percent this year is not going to be reached, but we are not below 2 percent at this point in time,” Pravin Gordhan told an investment conference.
“We believe we have enough in the pipeline to stay above the 2 percent mark and get to a very different trajectory.”
The central bank has forecast growth of 2 percent this year compared with 2.5 percent in 2012.
South Africa is one of the “fragile five” emerging economies seen most vulnerable to a withdrawal of US monetary stimulus.
South Africa faces elections next year, but Gordhan said this would not lead to irresponsible spending policies.
“Is this government going to give in to popular pressure, to make irresponsible decisions before elections next year? The answer to all of (these questions) is no. We have chosen a particular way of operating our finances and we intend to continue doing that in future.” - Reuters