South Africa should weather the economic crisis that has gripped the globe, Russell Harte, group chief financial officer for the Liberty Group (LGL) said on Tuesday.

Speaking at the UBS 11th annual financial services conference in Cape Town, Harte said the impact of global economic events on South Africa had been limited.

South African companies had not been as exposed to securities linked to the subprime mortgagte market to the extent that companies in Europe and Asia had been.

"The impact of sub-prime is lower in South Africa – at present. To date the insurance industry appears less affected than banking does."

Harte said that the South African economy was still in an upward cycle and GDP growth prospects were still relatively promising in South Africa, with Liberty forecasting a GDP of 3.3 percent for 2008 and three percent for 2009.

Inflation peaks

Interest rates and inflation also appeared to have peaked. Liberty is expecting a six percent CPIX rate for 2009 from 7.3 percent in 2008.

Harte added that the National Credit Act (NCA) had had the required impact of slowing down access to credit and curbing rising debt.

The recent political changes had also had a "short-lived minor impact" on local markets as global events took centre stage, he said.

I-Net Bridge