Saturday, August 15, 2009

World Cup will help SA recover from global economic crisis

Pisuke optimismi kulub ära ju külll!?

The 2010 FIFA World Cup was likely to contribute significantly to South Africa's recovery following the global economic downturn, which struck during the second half of 2008, an economist said last week.

Speaking at a panel briefing by accounting firm KPMG, Nedbank chief economist Nicky Weimar said that the World Cup would assist South Africa in growing its gross domestic product (GDP) to 1,6%.

Weimar noted that studies analysed by Nedbank had proven that countries hosting an international sporting event, which had strong local support, generally resulted in positive long-term returns. The opportunity to create tourism awareness would also benefit South Africa.

Economist in the Presidency, Alan Hirsch, noted the South African economy, which is in its first recession in 17 years, was likely to move into positive territory later this year. He said the economy could see gross domestic product (GDP) growth of 0,5% or 1%, compared with the first quarter of the year's negative growth of 6,4%.