Bloomberg News

South African Minister Says Turbulence Hurting Job Creation

November 25, 2011

Nov. 25 (Bloomberg) -- Global market volatility is creating uncertainty in the developing world and making it difficult for South Africa to create jobs, South African Finance Minister Pravin Gordhan said in a speech hosted by the Public Investment Corp. in Johannesburg today.

Weaker economic growth in Europe, which buys a third of South African manufactured exports, is undermining the recovery in Africa’s biggest economy. Gordhan on Oct. 25 lowered the government’s growth forecast to 3.4 percent in 2012, less than half the 7 percent that’s needed to slash the 25 percent jobless rate to 14 percent by 2020.

The Reserve Bank has left its benchmark interest rate unchanged at a 30-year low of 5.5 percent this year, after lowering it by 6.5 percentage points in the two years through November 2010. Inflation accelerated to the top of central bank’s 3 percent to 6 percent target range in October, the statistics office said on Nov. 23.

--Editor: Alan Crosby

To contact the reporters on this story: Sikonathi Mantshantsha in Johannesburg at

To contact the editor responsible for this story: Kenneth Wong at

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