In an interview with CNN Finance Minister Pravin Gordhan recently said that “Growth is certainly going to be below 3 percent as we go into 2012,” .
He predicts that South Africa’s economy will probably expand less than 3 percent this year due to the “situation in Europe”. Gordhan said this is the likely growth projection (more than 2.5 % but less than 3%) as a possible recession in Europe will sap demand for SA exports to that region. He noted that “Europe as a whole is a major trading partner for South Africa. And for the last 12 to 15 months has had a major impact on our manufacturing industry and other export sectors as well.”