Deputy Speaker, the lower growth anticipated in the next year is principally the result of the global economic slowdown, aggravated by recent domestic developments. The International Monetary Fund recently revised the global gross domestic product growth downwards with the declining output in Europe, and slower growth in both China and the United States.
This impacts on our economy with regard to a reduced demand for local minerals, as well as manufactured exports, and lower prices for commodities on global markets. Our exports to Europe fell by 6% in the first half of 2012. While exports to China and the United States are still growing, the rate of growth is significantly lower than what we saw in 2010 and 2011. Our largest commodity exports are platinum, iron ore, coal, and gold. The prices of platinum, iron ore, and coal have fallen by between 10% and 30% over the past two years.
In the face of the global economic slowdown, as well as the loss of production caused by the wave of strikes in the mining sector, we have taken steps to mitigate the impact on the South African economy. In short, we are facing strong headwinds, which means that we have to do more to sustain growth in output and in employment.
So, what are we doing about it? Firstly, the National Infrastructure Plan is intended to support domestic demand. If we can't rely on global demand, we have to stimulate domestic demand. Coupled with higher levels of local procurement, this can directly generate employment in construction and in the production of inputs, raise living standards and productivity, and so on.
Secondly, the Presidency recently agreed on a package of measures with organised business, labour movements, and community representatives, in order to address both the workplace conflicts and the global slowdowns. The package includes an accelerated set of infrastructure interventions; a common commitment to defending and strengthening normal collective bargaining practices, coupled with efforts to support the speedy return to work by striking mine workers; support for the rule of law and an end to violence; upgrading of housing and services, particularly in mining towns; and agreements to expand public employment schemes, and to identify funding for measures to help workers and companies affected by the economic slowdown.
We met with representatives of business, labour, and community organisations yesterday. We got a report from people in the mining sector. They indicated to us that there had been some success in getting workers to return to work, particularly in the gold mining sector. Of course, more needs to be done. But it does demonstrate that we, as South Africans, are able and willing to work together when faced with the kind of challenges that we are faced with now. Thank you. [Applause.]