South Africa's economy is not heading for recession, with growth still strong, boosted by robust investment growth, the top Treasury official said on Wednesday.
"We think that the South African economy is actually still strong," Treasury Director-General Lesetja Kganyago told Reuters in an interview.
Signs that Africa's biggest economy is beginning to strain under the weight of higher interest rates and slower global activity, with confidence indicators diving, have raised concerns the country is heading for a recession.
Ratings agency Moody's said in a credit opinion that this could lead to Africa's biggest economy veering towards recession at the end of 2008.
The Treasury's upbeat picture follows yesterday recession warnings from FNB. But with property prices falling, personal debt figures spiralling, interest rates rising and Justmoney.co.za's own findings that consumer spending is slowing, you have to wonder just how long it will be before we are officially in recession.