SA's economy has the resilience to grow: Manuel

Finance Minister Trevor Manuel is confident that the economy will reach a 4% growth rate despite internal pressures and the present global economic storm.

Manuel told Parliament that the economy still has the resilience to continue growing. Manuel says: “The global economy is looking more battered and worn, the sale of Bear Stearns to JP Morgan for 10% of its value… is a clear sign that the global financial system is in trouble."

Manuel says these challenges will affect South Africans. However, he says the country is well placed to benefit from the global recovery in future.

"We face a difficult set of challenges in the period ahead but we're confident that our ship is strong and that we will weather the present storms that are raging worldwide," says Manuel.

He says government will not abandon its inflation targeting policy. “During the heightened turbulence it is important to use inflation targeting as an anchor upon which we steady the economy and investment for higher growth."

Manuel says the country cannot abandon its anchor at the first signs of distress.