THE domestic and international economic environment would be "difficult" over the next year‚ the adviser to the Reserve Bank governor‚ Brian Kahn‚ warned yesterday.
South Africa was particularly vulnerable to capital reversals because of its "persistent current account and fiscal deficits"‚ which required stable financing. This meant there was an "urgent need" to increase exports to address South Africa's balance of payments problems‚ Kahn told parliament's standing committee on finance during a briefing on the bank's annual economic report.
Reserve Bank governor Gill Marcus also warned there was a "real risk" of sudden large outflows of capital in the near future. – Linda Ensor