South African economy

21 October 2008 – South Africa’s Finance Minister Trevor Manuel is expected to cut growth forecasts today as Africa’s biggest economy braces for the ripple effects of a global credit crisis and slowing world growth.

Manuel will unveil at 1200 GMT on Tuesday the Treasury’s Medium Term Budget Policy Statement — that gives three year spending plans and updates economic forecasts — amid a severe global financial crisis and fears of a looming world recession.

Forecasted budget surpluses may be in danger as higher borrowing costs increase the price tag of a massive infrastructure programme, and cooling consumer spending eats into tax coffers.

But he is not expected to announce major policy shifts, after the government vowed to hold its course, despite new, more left leaning, leaders in the ruling ANC and government.