South Africa's recovery still "fragile"

Jul 07, 2010

South Africa's recovery from the global financial crisis is "fragile and uneven", the Governor of the country's Reserve Bank has warned.

Speaking today (July 7th), Gill Marcus said that while a revival is taking place, it is "hesitant" and largely dependant on actions by other countries, most notably European nations.

She explained some analysts have downgraded their quarterly growth forecasts for South Africa and noted the rate of recovery in the country "is expected to remain much slower than in many other emerging markets". The Reserve Bank expects economic growth to average around three per cent this year.

It recently published figures showing residents in the country have increased their demand for credit as the recovery from the downturn continues, with requests rising 0.8 per cent year-on-year during June.

This was larger than had been expected, as a poll of analysts and experts organised by Reuters revealed applications in the private sector were predicted to have increased by 0.63 per cent.