'SA will avoid recession, growth remains low'
Finance Minister Pravin Gordhan has raised concerned about the volatile labour market.
JOHANNESBURG - Finance minister Pravin Gordhan has raised concerns about the country's labour market.
He was speaking at a business conference in Sandton.
The minister believes the country will avoid a recession but it will record low growth like the rest of the world.
Gordhan says he is concerned about the country's volatile labour market, which has been plagued by strikes and above inflation wage demands.
His comments come at a time when wage negotiations are taking place in the power, automotive and mining sectors.
Initial demands range from 13 to 20 percent - well above inflation which currently stands at 6.3 percent.
The minister says the economy will avoid a recession this year but growth remains low along with the rest of the world.
The Reserve Bank and International Monetary Fund have lowered their growth forecasts for this year.
The National Treasury is also expected to lower its forecast in the October budget.