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CAPE TOWN, June 15 (Xinhua) -- South Africa will not realize the2017 growth projection of 1.3 percent due to a series of negativedevelopments, Finance Minister Malusi Gigaba said on Thursday.
This continues the trend of low growth over the last severalyears, undermining the country's progress in significantly reducinginequality P.J. Hall Jersey , unemployment and poverty, Gigaba said in his latestupdate on the country's economic situation.
This fundamentally disadvantages a large portion of thepopulation, and is the cause of social instability, he added.
"It therefore requires all social partners to reflect on ourprogress in bringing about inclusive growth and economictransformation, and to do all that we can and more Kolton Miller Jersey , from ourrespective positions," the minister said.
Gigaba cited several factors that hamper the country'sgrowth.
These include the downgrade of the country's credit rating tojunk status by Standard & Poor's and Fitch in April and adecision by Moody's in early June to downgrade South Africa's longterm foreign and local currency debt ratings at "Baa3 with negativeoutlook.
All three rating agencies have raised similar concerns over theslow pace of growth-enhancing reforms; growing contingentliabilities amid poor governance at key state-owned enterprises;and political risks, among other issues.
Moreover, South Africa's Gross Domestic Product (GDP) contracted0.7 percent in the first quarter of 2017, following a contractionof 0.3 percent in the fourth quarter of 2016.
"This trend unfortunately implies that our economy has enteredinto a recession Donald Penn Jersey ," Gigaba said.
"Our sovereign credit rating has huge macroeconomic impact, andaffects government, business, and ordinary South Africans alike. Weare committed to restoring it to a favourable investment graderating with a positive outlook as quickly as possible," hesaid.
The government has been deeply engaged with the issue of therecession Justin Ellis Jersey , analyzing its impact on the growth target, andconsidering an appropriate response, according to Gigaba.
"We have heard the call from business and investors thatproviding policy certainty and stabilizing and revitalizing stateowned companies are among the most important short term s