No quick recovery from recession - BUSA

Thursday, December 10, 2009

Pretoria - While South Africa has technically ended its economic recession with an economic growth of 0.9 percent in the last quarter of 2009, business experts have cautioned that it was probably too early to celebrate.

Business Unity South Africa (BUSA) said while the economy was showing positive signs of growth, South Africans should not detract from the reality that the country's economy remained weak.

"Any recovery from this crisis is likely to be gradual and we must acknowledge that there is still much that needs to be done," BUSA said.

"Our view is that the recovery is therefore likely to be a slow one in which the pace of global recovery is an essential factor. Spending related to the 2010 FIFA World Cup and tourism and tax income generated will support the recovery. Employment growth is likely to lag the economic recovery," it said.

The current economic environment underscores the importance of not losing sight of long-term competitiveness fundamentals amid short-term urgencies.

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