Economy is growing

Waghied Misbach

Waghied Misbach

President Thabo Mbeki has outlined government successes in meeting plans to grow the country's economy and build a better life for all, but has also said that there are many weaknesses, as well as a lack of progress.

In his state of the nation speech on Friday, Mbeki outlined progress and failures in terms of investment, black economic empowerment, job creation, social grants, housing, land, crime and service delivery, particularly at municipal level.

The economy's growth rate of 4,5percent is the highest since 1994. Private and public sector investment in the economy has increased by an average of 11percent, and overall public sector infrastructure spending increasing by a yearly average of 15,8percent.

Currently fixed investment as a percentage of gross domestic product is at 18,4percent, the highest since 1991.

The number of employed people has been increasing by about 500000 a year in the past three years.

Black people have also been making progress in the economy. From owning just 3percent of the market capitalisation of the Johannesburg Stock Exchange, this has increased to about 5percent.

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