MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Coega predicts 1% growth for EC province

By

The Coega Development Corporation (CDC) today released their much anticipated 2016 fourth edition of the “CDC Eastern Cape Socio-Economic Analysis & Forecast publication.” The publication is an annual thought leadership publication developed and published by the CDC’s Senior Economists and Business Analysts

“This annual thought leadership publication continues to position the CDC as instrumental in providing thought provoking ideas and/or recommendations on the EC economy as well as on issues pertaining to the development of the South African society,” says Dr. Ayanda Vilakazi, CDC’s head of marketing and communication.

The report is produced at a time where significant parts of the world economy are facing with major challenges. The economy of the Province is characterised by subdued economic growth that could be derailed by geopolitical tensions, owing to its exposures to external shocks. Unemployment is still high with low productivity growth as well as persistent income inequalities. Growth in the EC in 2016 is expected to continue, but the recovery is slow. Fiscal policy more generally is expected to support the recovery this year, and monetary conditions are set to remain highly accommodative.

“As a consequence, the acceleration of economic activity expected this year is minor as the provincial economy is forecast to expand by 1.0 percent, a 0.1 percentage point less compared to the growth observed last year. Growth should pick-up further to 1.5 percent in 2017 but this will depend crucially on a rebound in investment, which has so far remained elusive and is sensitive to domestic policy uncertainty,” says Christopher Mashigo, CDC Executive Manager, Business Development.

Furthermore, with three import/export harbours and three airports offering direct flights to the main centres, and an excellent road and rail infrastructure, the province has been earmarked as a key area for growth and economic development in modern South Africa. To date, 36 operational investors are located within the Coega IDZ, with a combined investment value of R6.6 billion. In the 2015/16 FY, the Coega IDZ has signed 17 additional investors with an investment value of R27.0 billion.

The following two tabs change content below.
My Twitter profileMy Facebook profileMy Google+ profileMy LinkedIn profileMy Flickr profileMy Pinterest profile

Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.