From Sowetan Online:
Finance Minister Trevor Manuel today forecast lower growth on the back of global uncertainty, announcing he will hoard some surplus revenues to absorb future shocks.
Presenting his medium-term budget to parliament, Manuel said instability on the major markets, dollar depreciation, volatile commodity prices and rising oil and food inflation are hurting South Africa’s growth projections.
“One of the first issues that arises is .. a very moderate revision downwards by 0.1% of growth this year, a more significant downward revision by 0.7% for next year and then it starts picking up again but is still down on our February forecast for the third year,” said Manuel.
In his main budget in February, Manuel had predicted economic growth of just over 5% per year up to 2009, which he now put at 4.9%, 4.5% and 4.8% for each of the three years.
For the rest of this Sowetan Online article, go here.
NVDL: Lower growth = fewer jobs = more poor/disgruntled/disenfranchised/disempowered people = more crime.