Tuesday, April 14, 2009
According to Project 2010, a 2010 World Cup business information site, the South African economy has entered a recession despite the major construction underway for the 2010 World Cup.
Statistics South Africa says the basic iron and steel, non-ferrous and metal products, metal products and machinery sector had experienced a 22.3% decline year-on-year.
Analysts expect the country’s gross domestic product (GDP) to contract by 2.5% year-on-year in the first quarter of the year, following the 1.8% contraction which was recorded in the fourth quarter of 2008.
Finance Minister Trevor Manuel says government will allocate R19 billion ($2.1 billion) for the completion of 10 stadiums by the end of this year. It will also set up a grant to assist the host cities.