|Economic targets to be missed?|
|Tuesday, 10 July 2012 17:17|
Local economic analysts say the envisaged 9,4% economic growth rate is likely to be missed due to the depressed demand of commodities on the international market as well as the deepening Eurozone crisis.
The concern comes at a time the country’s fiscal authorities are set to present the 2012 Mid Term Policy Statement.
Economic analyst, Mr Washington Mehlomakulu believes the gloomy global economic outlook coupled with the depressed demand of minerals by the traditional markets is threatening the envisaged economic growth targets this year.
Another economic analyst, Mr Nicky Moyo says commodity prices and demand will only rebound if the struggling economic grouping, the EU, finds a lasting solution to the current economic woes.
Government is set to review downwards the 2012 economic growth target, owing to the budgetary pressures and underperformance of the economy during the first half of the year.
Mining and agricultural sectors have in the past provided the bulk of the country’s exports.
The two sectors were expected to contribute immensely to the set target of 9,4% economic growth.
However, lack of funding as well as the subdued metal prices have resulted in the underperformance of the two industries.