South African Economy Going South

South Africa was doing alright. Its economy is one of strongest in Africa and has been climbing for the past 10 years. But since 2008 it’s been slowing. And that’s creeping some economists out.

The past couple years interest rates have been cut nine times, according to an article in Canada’s Winnepeg Free Press. Some economists say it’s too little, too late. Even with the slashed interest rates, it doesn’t seem to be enough to kick start investment from its people. Maybe if South Africa looked at what some “developed” countries are doing they’d get a clue as to where to start. The country’s lending rate is at 5.5 percent which is relatively high (in the U.S. it’s less than 1 percent).

The South African National Treasury expects the economy to grow around 3 percent this year, and 3.5 percent next year. Its target is 7 percent for the next two decades. But tt has a long way to go if it wants to see any progress and to see it’s 25 percent jobless rate decrease (which is the lowest of 62 countries tracked by Bloomberg).

They might have to make a tenth and much larger slash if they expect to reach its goal.

Written by Devin

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