Johannesburg, April 22 (IANS) More trade with other BRICS countries will help South Africa recover from the global economic crisis, the South African Reserve Bank said in a statement, reported Xinhua.
The statement said the remark was made by its governor Gill Marcus in Johannesburg over the weekend.
In her speech, Marcus said that the work stoppages in the mining sector in South Africa last year negatively impacted on the country’s exports performances since mining sector is the main source of exports.
Marcus believed that the weak global growth environment looks set to persist. “The slow recovery of advanced economies is making it difficult for South Africa’s trade account of the balance of payments,” she said.
“Since the traditional trading partner Britain in manufacturing exports is not performing well, there is a need for South Africa to look to emerging markets,” she said, pointing that South Africa should exploit the BRICS membership benefits.
BRICS is an acronym for the powerful grouping of the world’s leading emerging market economies, namely Brazil, Russia, India, China and South Africa.
“South Africa is now part of the BRICS grouping, and though a relatively small partner, we are full members and are working to maximize the opportunities that present themselves,” Marcus said.
Marcus praised the BRICS for its fast development in economy, saying: “There is little doubt that there has been a tectonic shift in the drivers of global growth. The emergence of countries such as Brazil, Russia, China and India has changed the epicenter of global economic activity.”
“The BRICS share of global GDP has increased three-fold in the past 15 years, and this share is currently around 20 percent in market terms, and is expected to rise to 45 percent by 2030,” she added.
Marcus said that China managed to survive the hard nock of the global economic crisis, which will assist South Africa, one of the China’s biggest trading partners on the African continent.
South Africa is currently trying to increase exports to other countries to balance exports and imports.
The governor said the growth of the Chinese economy will increase a demand of South Africa goods and services. “The expected growth rate of around 8 percent in China should help to underpin the demand of commodities, which is critical for South Africa’s growth outlook,” she said.