Nov. 24 (Bloomberg) -- Moody’s Investors Service’s downgrade of South Africa’s credit rating outlook and the European debt crisis is a “wake-up call,” Finance Minister Pravin Gordhan said.
South African policy makers have an opportunity to act to address the risks holding back economic growth, Gordhan said in a speech in Johannesburg today. The government has the flexibility to allow its budget deficit to widen temporarily to support economic growth and job creation, he said.
Government investment is a key driver of economic growth and it’s “critical” to continue investing in infrastructure, Gordhan said. Policy certainty, including on nationalization, is needed to restore foreign investor sentiment, he said.
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