|Home | Mail | Jobs | Area Profiles | Rezpremises|
|News | Property | Business | Farms | Hotels | Land | Investment|
SA Unlikely to Reach Growth Targets| News by Staff Reporter
This is according to the Development Bank of Southern Africa
The Development Bank of Southern Africa (DBSA) on Monday said in order for SA to reach the target of 5-million jobs created by 2020 it would need to grow its GDP by 10% per year.
The target of South Africa’s New Growth Path is to create 5-million jobs in the next eight years by growing gross domestic product (GDP) by 7%, but the DBSA has warned that government may be overestimating the employment intensity of such growth.
According to Ravi Naidoo, group executive for DBSA, there was very little chance that the country would achieve a GDP growth rate of 7% - 10% in the next few years, but added that even if the New Growth Path fails to produce the numbers initially planned for it should not be considered wholly unsuccessful.
He said it would go some way to employing the fundamentals needed to sustain growth, and was therefore a more long-term solution.
Minister of Economic Development Mr Ebrahim Patel, however, said the New Growth Path set an employment target rather than a growth target.
“Clearly, higher growth is required in order to achieve the jobs target,” he said.
“However, the jobs outcome is a function of two variables: the rate of growth and the labour intensity of growth.
“While the DBSA states that a rate of growth substantially above 5% is unlikely for South Africa, the New Growth Path requires measures to diversify into more labour intensive activities in order to achieve a significant reduction in the jobless rate,” the minister said.
“It is for that reason that the New Growth Path identifies jobs drivers that seem more likely to create employment as they grow.”