Policies should be aimed at diversifying economies: Schlettwein

Policies should be aimed at diversifying economies and avoid missteps that could harm economic activity should be the main priority of the Southern African Development Community (SADC) region, Minister of Finance, CalleSchlettwein said.

Schlettwein said this during the opening of the SADC Committee of Ministers of Finance and Investment meeting held here on Friday.

He said where fiscal consolidation is needed, policy should calibrate its pace to secure stability without suppressing near-term growth and harming programs that protect the vulnerable.

'These efforts require the region to act collectively and devise and implement medium and long term measures,' he said.

He pointed out the macroeconomic and financial policy of each member state that should guard against deceleration where output may fall below potential; while at national level, the monetary policy should keep inflation expectations anchored.

A fiscal policy is also needed to manage trade-offs between supporting demand and ensuring that public debt remains on a sustainable path.

'Where fiscal consolidation is needed, policy should calibrate its pace to secure stability without suppressing near-term growth and harming programs that protect the vulnerable,' he said.

The meeting will review progress made in the implementation of the region's decision and strategic programmes, as well as the Protocol on Finance and Investment which is and integral pillar of the SADC economic integration agenda and sets out a legal basis for regional cooperation and harmonisation in finance, investment and macroeconomic policy.

Source: Namibia Press Agency