When zero growth is de­sir­able

Finweek English Edition - - Letters -

WHAT HAP­PENED DATA RE­LEASED BY Statis­tics SA re­vealed the econ­omy shrank by 6,4% in first quar­ter 2009. The de­cline was said to be the sharpest in 25 years – the 6,5% con­trac­tion in 1984 – prompt­ing Na­tional Trea­sury di­rec­tor-gen­eral Le­setja Kganyago to say SA would be lucky if the econ­omy achieved zero growth for the whole year. BUSI­NESS DAY said bleak as the sit­u­a­tion seemed, SA’s fis­cal and mon­e­tary pol­i­cy­mak­ers have scope to stim­u­late the econ­omy to avoid the worst of the re­ces­sion. It men­tioned pub­lic in­fras­truc­tural spending and repo rate cuts as pos­si­ble ways to avert the worst. The Sowetan called on Gov­ern­ment, labour and busi­ness to work to­gether in this sea­son of in­dus­trial un­rest.

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