Slowdown is global – Unctad

Tariff hikes help Acsa into profit

THE UN Conference on Trade and Development (Unctad) has warned that growth was slowing in all regions of the world and, as a result, a number of developing countries were carrying out continued countercyclical policies that supported domestic demand but these would not be sufficient if growth did not pick up in advanced countries.

In its report, “Trade and Development, 2012: Policies for inclusive and balanced growth”, released yesterday, Unctad predicted a tumble in developed countries to a mere 1 percent growth this year because of a combination of a renewed recession in the EU and anaemic growth of just 2 percent in the US and Japan.

It said: “The global economy weakened significantly towards the end of 2011 and further downside risks emerged in the first half of 2012. The growth rate of global output, which had already decelerated from 4.1 percent in 2010 to 2.7 percent in 2011, is expected to slow down even more in 2012, to below 2.5 percent.”

The UN agency added that, as predicted by its economists, fiscal austerity and wage compression were further weakening growth in developed countries. – Wiseman Khuzwayo AN INCREASE in passenger numbers combined with higher tariffs helped Airports Company South Africa (Acsa) to return to profitability in the year to March, after a loss of R221 million the previous year when the parastatal struggled to meet repayments due on loans incurred in upgrading the stateowned airports in Johannesburg and Cape Town and building the King Shaka International Airport in Durban.

The company explained at a press conference yesterday that the turnaround – in a difficult year when airlines worldwide are struggling against escalating jet fuel prices and lower passenger numbers – was “largely attributable to a partial resolution of the impasse between the company and the regulating committee” that had limited a rise in the tariffs Acsa had asked for the previous year.

Acsa made a profit of R188m despite financing costs of R2 billion against a R16bn debt. Total revenue rose 23 percent to R5.74bn. The recovery was also supported by 7 percent growth in income from retail, advertising, parking, car rental and overseas operations to R2.39bn.

Bongani Maseko, the acting managing director, said the group’s airports handled 17.9 million passengers, up 3 percent over the previous year. – Audrey D’Angelo