If risk subsides again, perhaps because we borrow less or invest more to grow faster, we will have more monetary space and might cut rates responsibly. Ladies and gentlemen, to conclude, let me make a point frankly. We don’t have balanced and sustainable growth in South Africa. With annual GDP growth rates under 1%, we barely have any growth.
The current accounts of deficit countries have improved dramatically since 2008. The improvements range from nearly 9 percentage points of GDP in Ireland to more than 15 percentage points in Greece. According to recent estimates by the European Commission, most crisis countries will achieve a current account surplus this year.