Johannesburg economy grows by 6.4%

Johannesburg Executive Mayor Amos Masondo, said on Wednesday that the city's economy had grown by more than 6% per year in the last two years, reaching a 6.4% growth between 2006/07 and 2007/08.

“This growth has been driven by a range of sectors, construction in particular,” he said, presenting his 2006 to 2008 Mid-Term Report.

The mayor explained that one of the objectives of the city was to achieve economic growth of 9% if the country's overall economy grows by 6% in 2014.

To achieve this goal, emphasis must be placed on the diversification of the city's business sector and resources, he said.

Johannesburg is home to the Johannesburg Stock Exchange (JSE), the largest and most sophisticated stock exchange on the continent and as a result is the headquarters of many large multinational corporations.

Given the economic crisis prevailing on global markets at the moment, Masondo explained that the city and the country's economic growth was, however, likely to slow.

“The sound South African macro-economic environment not withstanding, we have seen declining commodity prices and exchange rate, declining business confidence and a downturn in industry results.

“During the first half of the mayoral term, the economic unit of the city has focussed on systematically restructuring, realigning day-to-day operations of the core department and its associated entities.

“We will continue to position the city as an economic role player of significance by seeking to ensure amongst others that the cost of doing business in Johannesburg becomes cheaper and that less time is spent on approving development applications,” he said.

In terms of the value of the city's economy in relation to the country, Johannesburg contributed 48.2% to the provincial economy, and 18.1% to the national economy.

The size, in terms of the amount of investment, in Johannesburg, exceeds that of the other five metropolitan municipalities in South Africa, he said.

Article published courtesy of BuaNews