Wednesday, October 13, 2010

Gauteng now SA's cash cow

Gauteng has moved from being a net importer - importing about 58% of all South Africa's imports in 2002 - to becoming a net exporter, shipping about 66.7% of all the country's exports in the past year.


 
Launching the Provincial Economic Review Outlook at the Gauteng Legislature yesterday, finance MEC Mandla Nkomfe said the province has reversed its trade deficit from R39.7-billion in 2007 to a surplus of R21.3-billion in 2009.
Nkomfe attributed this to favourable rand-dollar exchange rates.
The outlook is compiled by the Gauteng Department of Finance to analyse trends that drive economic activity in the province.
Nkomfe said the province was still the biggest contributor to the national economy, contributing about 35% a year.
"This is set to continue to 2014 and, we hope, beyond," he said.
"Sectoral analysis shows that the financial and business services sectors to be the propellers of growth in the province, followed by the government, social and personal services, and manufacturing.
"The metros contribute most to the gross domestic product last year: Johannesburg contributing 47.6%, Tshwane 26% and Ekurhuleni 19%."
Nkomfe said the province wanted to strengthen its manufacturing sector.
To this end, its Economic Development Department will soon release the province's industrial strategy, which will have a strong bias towards manufacturing.
"Manufacturing is very important, taking into consideration its linkages with other sectors of the economy.
"Furthermore, this sub-sector is labour intensive, though it tends to use more capital and technology.
"It is estimated to have contributed a total of more than 19% to the provincial economy in 2009," he said.
Manufacturing will be positioned to lead economic growth in Gauteng in the wake of the recession.
But Nkomfe said: "We remain worried about the unemployment rate, which increased for the first time last year after consistently declining since 2002.
"Unemployment in Gauteng stands at 24%, with the African [black] population the most affected."

Source: www.timeslive.co.za

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