Tag Archives: IMF

All new geopolitical period for Africa with SA in Brics

South Africa’s addition to the Brics comes with added new geopolitical relevance for the continent, proclaims International Relations Minister Maite Nkoana-Mashabane.

Brics – the formidable collection of emerging trading markets Brazil, Russia, India and China, along with SA being the most recent member – is without a doubt acquiring and maintaining muscle amid international investors, and in addition the African continent will as a result reap some benefits as a result of a greater depth of cooperation in a variety of areas.

Briefing mass media following on from the Sanya summit, Nkoana-Mashabane proclaimed Africa in its entirety would most likely reap the benefits of South Africa being a member of Brics, specifically in areas which include economic integration, trade and investment and improving good governance.

“Our fortunes [as African countries] are generally connected. As much as we did not approach the AU to seek out a mandate to join Brics, SA diplomats speak out for the well being of SA as well as the African continent in general,” Nkoana-Mashabane told a media briefing.

Nkoana-Mashabane stated with the continent accepted as a developing region, Africa can certainly anticipate to reap some benefits economically in areas which include agriculture, infrastructure, IT as well as assist Africa to benefit as a result of a great deal more equitable world governance bodies.

She pointed out that Brics’ drive for the reform of the global institutions of governance as well as the UN will assure that African issues enjoy centre-stage in deliberations within the UN Security Council, the IMF and World Bank.

President Jacob Zuma

The meeting, which contributed to bringing together the five fastest growing economies, contributed to a statement being issued by Brics elaborating on their vision for common development and shared prosperity, as well as put forward several new campaigns for global economic governance.

The three-day get together, that concluded on Friday, additionally called for the swift achievement of the targets for the reform of the International Monetary Fund accepted during the recent G20 summit, and reiterated that the governing structure of the international financing institution should preferably mirror the changes in the world economy.

The leaders promised to support the change and improvement in international monetary systems for the creation of a stable, reliable and broad-based international reserve currency system.

The five Brics nations made a decision to hold another meeting of high-level representatives later this year in China to talk about security issues, embark on joint research on economic and trade issues, promote cooperation in sports and encourage collaboration in scientific, technological and innovation cooperation.

Source: BuaNews, csmonitor.com, thenewage.co.za, news4u.co.in,


SA financial growth forecasts reduced for years ahead

The South African overall economy is forecasted to expand by 3.4 percent this year. According to the International Monetary Fund (IMF) this figure is down by .01 percent based on previous projections.

In the most recently released World Economic Outlook (WEO) statement update, the IMF reported that local overall economy is expected to grow by 3.4 percent, a negligible variation coming from the IMF’s WEO 2010 forecasts of .01 percent. The South African economic environment is anticipated to grow by 3.8 percent in 2012, equally down by 0.1 percent provided by earlier projections.

The IMF’s projection when it comes to growth in 2011 is actually in line with the South African Reserve Bank’s forecasts which actually actually adjusted its figures and forecasts last week for 2011 resulting in the similar growth forcasts of  3.4 percent. At the same time, the central bank left its projection for 2012 unchanged remaining at 3.6 percent.

Based on the latest report overall growth when it comes to emerging and developing economies continued to be strong in the third quarter buoyed as a result of well-entrenched private demand, still accommodative policy stances, and resurgent investment capital inflows.

With respect to the WEO nations located in sub-Saharan Africa have definitely recovered swiftly from the global economic crisis with the area predicted to grow 5.5 percent in 2011.

“However the actual tempo of the financial recovery has varied within the region. Output growth within the majority of oil exporters and low-income countries (LICs) is currently in close proximity to pre-crisis levels.

The actual financial recovery in South Africa along with its neighbours, on the other hand, has actually been a lot more subdued, highlighting the more severe influence of the collapse when it comes to world trade in addition to elevated unemployment levels which have been proving to be challenging to decrease,” it said.

Growth in emerging and developing financial systems is anticipated to continue to be buoyant at 6.5 percent a moderate slowdown from the 7 percent growth registered last year. Asian countries on the other hand continues to grow rapidly, it said.

Source: BuaNews, imf.org, economist.com, bbc.co.uk,