South Africa’s

economy has been projected to grow between 3.5 and 3.8% this year, up from -7.1 and 2.8% in the last two years respectively. The Financial and Fiscal Commission revealed on May 30th, indicating that the growth showed the economy was mending from the recession.

Despite the positive picture, a lot still needs to be done as unemployment, poverty, inequality and low growth continued, it said. The commission tabled before Parliament its recommendation for 2012 and 2013.

Addressing the media, the commission’s Deputy Chair Bongani Khumalo said that it was up to Parliament to enforce their recommendations. Khumalo said that despite the provision of social grants, poverty remained high among “black and female-headed households.” Inadequate educational and health outcomes are similarly skewed against the poor, he said, adding that “distorted settlement patterns” meant those same people were located out of towns and in rural areas.

He said that while government had made steps in achieving its social goals, it should pay

attention to issues of inequality, poor educational attainment and child maternal mortality. Looking ahead, Khumalo said, the key issue for the country was to “strike a balance around inclusive growth and job creation together with fiscal sustainability and low inflation.”

South Africa’s current account deficit in the first quarter of 2011 widened to 3.1%. The Reserve Bank’s Quarterly Bulletin, showed that the deficit widened from a revised 1% (which was previously 0.6%) of gross domestic product in the fourth quarter of 2010 to 3.1%, reported BUA on June 21st. Analysts had expected the deficit to reach -2.9%.

The 3.1 %is attributable to the value of exports that levelled off in response to weaker international demand for domestically produced goods, whereas an expansion of gross domestic expenditure contributed to an increase in the value of merchandise imports.

According to the bulletin, the deficit on the services, income and current transfer account of the balance of payments widened by R6.8 billion to R109.8 billion in the first quarter of this year.