Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF) has said in a statement in Johannesburg at the conclusion of his visit to South Africa.

He said, 'The South African economy has weathered the immediate effects of the global crisis mainly due to sound macroeconomic policies, its flexible monetary and exchange rate regime, and a well supervised financial system. Fiscal policy has also been appropriately countercyclical, striking the proper balance between supporting output and preserving medium-term sustainability.'

Against this backdrop, our exchange of views covered a wide range of topics, he said. There was broad agreement on the need to sustain the current countercyclical measures to nurture the recovery, while preserving price and external stability as private demand recovers. Higher spending on public investment should also boost growth over the medium term. But additional reforms are also needed to accelerate growth and jobs creation and to reduce inequality. These include promoting competition to improve productivity and lower prices in those sectors where a handful of enterprises dominate. Quick implementation of the wage subsidy scheme announced in the recent budget speech could also help promote employment, particularly if it were focused at the low-skilled workers and new job market entrants.

“The success of South Africa has important implications for the rest of Africa. As a member of the G-20, it has a leadership role to play in advancing prosperity across the continent and making the voice of Africa heard in the international arena. The continued success of the South African economy will help to further strengthen this leadership role.