/ 2016 / sdn1606. pdf united states ( of america ) page 6 of 10 the second issue i would like to touch on has to do with innovations in the digital economy. africa in particular shows enormous potential in this area as the broader population gains increasingly more access to the internet. developments such as mobile money and e - wallets, p2p lending, alternative credit scoring, cross - border remittances as well as payment technologies leveraging digital platforms support real economic activity and contribute towards the common goal of financial inclusion. quite rightly, the t - 20 summit in beijing last year highlighted the importance of innovation as a key driver of sustained economic growth. the g - 20 has emphasised the potential role of digital finance in promoting financial inclusion in the g - 20 highlevel principles for digital financial inclusion, released in september 2016. there is widespread recognition that the fourth industrial revolution is evolving at an exponential pace, touching almost every fabric of society, with potentially significant implications for almost every sector and industry. this fourth industrial revolution and developments in digital finance hold huge potential for job creation and the promotion of small business development in emerging market and developing economies. according to the global information technology report 2016, the future of countries, businesses and indeed individuals will depend more than ever on digital technologies. this would apply equally to african countries and businesses, with the added challenge that many of those who stand to gain the most are not yet connected to the web. if we consider that africa is expected to have a population of 2 billion by 2050, with a significant proportion being young people who will need employment, it is important that we reap the economic and social benefits that the digital economy can provide. 11 the latest networked readiness index, which assesses countries ’ preparedness to reap the benefits of emerging technologies and to capitalise thereon, reports that seven countries stand out in terms of economic and digital innovation impact : finland, israel, the netherlands, singapore, sweden, switzerland and the united states. compared to 2015, south africa ’ s digital economy has jumped ten places to 65th out of 139 countries surveyed. this makes south africa one of the ten most11 baller, s., s. dutta and b. lavin ( eds. ) ( 2016 ), global information technology report 2016 : innovating in the digital economy. geneva : world economic forum page 7 of 10 improved countries, alongside italy and slovakia. but south africa is not the only

and within the next year the growth rate should gradually approach its potential, estimated at around 2? % per annum. the us, on the other hand, is growing fast, maybe too fast. certainly, i do not wish to belittle the achievements of the american economy, especially its high productivity growth, but the continuation of the twin deficits are certainly a cause for concern, in that a sudden correction could have far - reaching implications for the international financial system. the us sees with benign neglect its twin deficits. on the one hand, it expects that continuing fast rate of growth would generate sufficient tax revenues over the medium term, which, in combination with the gradual phasing out of some tax relief measures, will reduce the deficit and, on the other hand, they expect the current balanced of payments correction to be realized via a devaluation of the us dollar, which would help the sustainability of the us recovery and generate higher profits in dollar terms from the us investments abroad. in summary, they don't expect an abrupt and substantial rise in interest rates, which would have had adverse effects both on the fiscal deficit and on consumer demand, thus precipitating a cyclical downturn. however, the european point of view, if i am allowed to summarize, is that an unsustainably fast growth rate, based on private and public borrowing is not good for anyone and the us cannot be an exception. the eu, and especially the eurozone, has played a constructive role in promoting a stable financial environment. the recent appreciation of the euro is an indication of the markets'confidence in our economies. i believe that a strong euro is good for europe and the world, as it helps fight inflationary pressures and supports the confidence of consumers and producers. it is also clear that the eurozone cannot solve all the imbalances that threaten the stability of the international economy. i do not wish to enter the debate on whether the fiscal stimulus in the us was necessary two years ago, at the onset of the economic slowdown, but certainly it has to be reversed now as the us is growing at an unsustainable rate. at the same time, third countries, especially those in asia, should contribute themselves by allowing market forces to play a greater role in the determination of their exchange rate, and by abandoning their mercantilistic attitudes. however i should mention that, there is an open debate whether a revaluation of the chinese renminbi