'SA still predicting growth'

While South Africa has
experienced a dramatic
slow-down in growth from
5% in 2007 to a predicted
1.2% in 2009, the country is
still predicting growth and
not a recession as are many
other developed countries,
says Garth de Klerk, CEO
Coface South Africa.
“Even with our current
account deficit dropping to
3% of GDP, South Africa
is substantially better off
than other previously stable
economies,” he said.
However, South African
financial restrictions continue
to hamper the growth of
organisations, in his view.
“South African banks seem
unwilling to lend money to
good risk prospects. This,
in conjunction with a 30%
increase in liquidations in
the past six months and the
difficulty in collecting money
from debtors, is resulting in
a cash flow crisis for many
organisations.”