Document: Gauteng Provincial Government: Socio-Economic Review and Outlook 2011

This is the fourth publication of the Socio-Economic Review and Outlook (SERO). After experiencing a recession in 2009, the economies of the country and the province are returning to a positive GDP growth path. The recession affected the emerging and developing economies to a minimal degree, whereas the advanced economies bore the brunt of the recession. As emerging and developing economies were experiencing progressive growth, growth in advanced economies was sluggish. Information from the International Monetary Fund (IMF) shows that growth was relatively smaller in the advanced economies when compared to the economies of emerging markets and Africa, Sub-Saharan Africa and South Africa.

The year 2010 was a sensational one for both the province and country after organising and successfully hosting the 2010 FIFA World Cup and the completion of major infrastructural projects. The Gauteng Freeway Improvement Project will be completed and operating in the coming months; this will help to ease congestion on our roads and improve traffic flow. The country is also preparing for the local government elections in a few months time and it is therefore important to review government’s progress in terms of service delivery. This 2011 SERO publication analyses economic variables and their linkages to the levels of poverty to ascertain the progress government has made to improve the lives of communities.

In tabling this year’s State of the Nation Address, President Jacob Zuma has declared 2011 “the year of job creation”. South Africa has a chronic unemployment problem, even though the economy experiences better growth sometimes, the creation of jobs does not keep pace with the level of economic growth. Government is ready to meet the challenges head-on and has set aside a total of R39 billion for the creation of jobs. This total will be made up of R9 billion over the next three years allocated to finance new job-creation initiatives and the R20 billion in incentives and tax breaks aimed mainly at manufacturing. The Industrial Development Corporation (IDC) has also set aside R10 billion over the next five years for investment in economic activities with high jobs potential.