World Cup will help SA’s ailing economy

By Mikhaila Crowie
9 October 2008

While the global financial crisis simmers, one aspect unique to South Africa at the moment, which should aid growth, is the 2010 Soccer World Cup.

This is the view of Econometrix chief economist, Azar Jammine.
He suggests that while it is possible there could be changes to the number of people coming in light of the global crisis, there will still be "plenty of buzz" around the tournament, which will help the country's growth story.

Jammine said the rand was vulnerable to global events, especially if the world fell into a depression, but it also acted as an economic "shock absorber" by boosting exports.

Meanwhile, the South African Reserve Bank will conclude a two-day policy meeting today to decide on interest rates.

All 26 economists polled by Reuters expect the repo rate to remain unchanged at 12-percent, despite rate cuts in other countries.

Analysts say concern about record high inflation is being countered by worries over slowing consumer spending and economic growth.

Reserve Bank Governor Tito Mboweni will announce the decision this afternoon.