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Davos 2012: South African Finance Minister Gordhan

Friday, January 27, 2012 - 03:36

South African Finance Minister, Pravin Gordhan, speaks to Insider at Davos 2012

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South Africa we'll see grossing below 3% with the Euro zone crisis one factor behind the slide finance minister Previn Gordon. Joins me now I mean it's a very good to see you again hair analysis. You you said it's gonna drop below 3% the IMF I believe this is gone took two and a half -- you've embarrassed. Not very we have a -- -- 32 affinity so -- only it is Desmond until then. But it's fairly CNN and if you'll be below 3%. You can't give us a clue as to Elena -- -- wasn't IMAP. Probably a little bit of permanent but -- -- what are you doing sufficient movement. Well we've we looking at. CDs investment program with the president of amounts on the -- -- when we -- -- when he opens parliament. We really looking ahead to in new growth areas that -- -- new growth but that we've developed. In South Africa. We're looking at new areas of trade Africa. The other banks -- and other emerging market countries and so. Get greater diversification. As you know we part of the colonial heritage in some ways and we go to break away from -- -- attending all customers so to speak find -- Should the Central Bank consider cutting records. They've they've gone fairly low have been at this point in time and monetary policy has played good drove. And as important as we go -- to watch what the international development stuff and get better fiscal and wanted to coordination. How worried are you that the Fed's commitment to even -- policy is gonna. Spell Arafat's influence and and and pushed around up. One of the biggest concerns of countries that some African and other emerging markets as the volatility inflows. So that'd put off fears of vote two years ago and you had QE2. Either directly vote QE2 a lot of sentiment and huge inflows -- and -- -- the currency huge impact on manufacturers and exporters. And suddenly as it over the last June so you don't throws up filed a fallen sentiment. That the though that some I have been assigned to keep stable economy has. They've been talking reasons that you've been and whether what -- with -- Emerging economies. Other African economies. That what the Fed is doing is creating a problem for you. Yes they haven't commemorations and but statistics then and perceptions often don't don't quite coincide. The perceptions that any monetary loosening. -- the -- fare to anywhere else. Could have negative impacts within this countervailing forces such a sentiment. Which also drives capital flows. Ultimately you know meetings in the G-20 announcement we want greater stability we want an international framework that views bit. And management if you lack of capital flows -- and less volatility. Of course unemployment is is is this once again a huge team ever gonna talk to the island just the second. But what level you need to see. GDP to get people in South Africa working again. Not really -- to talk about a 7% growth over a sustained period of 1015 years. Which would -- but that has to be combined with structural changes that need to make your own economy debate. Advantage you've taken opportunities that we have book on the continent and an announcement. Micro economic reforms that we need to make within our economy as well. And focusing on labor absolving. -- is both of -- -- Industry which would then enable us to absorb both of those due to a cause and and others and of course he -- investment in skills. Minister Gordon and things to come back thank you thanks very much in the.

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Davos 2012: South African Finance Minister Gordhan

Friday, January 27, 2012 - 03:36