World Cup adds 1% to SA annual growth

The Soccer World Cup will boost the South African growth rate by one percentage point this year, Finance Minister Pravin Gordhan said late on Thursday.

“We had forecast that the 2010 Fifa World Cup would add 0,5 percentage points to annual growth this year,” Gordhan told business leaders at a dinner late on Thursday.

But, he said, when spending on stadiums and infrastructure since 2006 was taken into account, that rose to a one percentage point increase.

The government spent R33-billion on preparation for the month-long tournament, which was held on the African continent for the first time.

In February, the minister said South Africa’s economy was expected to grow by 2,3% this year, boosted in part by the World Cup, after contracting by 1,8% last year.

He added that the government was looking at the event to learn lessons for the future.

“These lessons will be taken forward in our public-sector infrastructure programme, where R6-billion has been committed over the next three years,” Gordhan said.—AFP