August 15, 2011 12:27 PM EDT
A sustainable and growth-inducing fiscal trajectory needs to be developed in South Africa, according to Finance Minister Pravin Gordhan.
South Africa’s Finance Minister Pravin Gordhan estimates the country might only generate four million jobs by 2025 if the current growth rates do not change.
Addressing an Internal Auditors' Summit on Monday, Gordhan said South Africa needed to sustain growth rates of around seven per cent per annum in order to create more jobs and deal with unemployment.
Gordhan also said that the South African economy would only create four million jobs by 2025 - a million less than targeted in government's job creation scheme announced by President Jacob Zuma earlier this year.
The minister said possible solutions included “more fiscal stimulus”, introducing policies to reduce inequalities, and creating new emerging sectors that could create jobs.
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Gordhan also suggested tighter supervision of financial systems.
“Governments across the world have not performed adequately in regulating the financial sector,” he said.
Gordhan also noted that while developed economies were facing sovereign debt problems, emerging markets were continuing to grow strongly.
“Investments will flow South in the next few years,” Gordhan said.
Gordhan said South Africa should “be proud” of its fiscal sovereignty that it has been able to obtain.
“We do not depend on the IMF to sustain ourselves,” he said.
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