SAfrica 2009 medium-term budget policy statement

CAPE TOWN (Reuters) - Following are highlights of South Africa's medium-term budget policy statement presented by Finance Minister Pravin Gordhan on Tuesday.

ECONOMY

- Budget balance estimated at -7.6 percent of GDP in 2009/10, -6.2 percent in 2010/11, -5.0 percent in 2011/12 and -4.2 percent in 2012/13.

- Real GDP growth estimated at -1.9 percent in 2009, 1.5 percent in 2010, 2.7 percent in 2011 and 3.2 percent in 2012.

- Current account deficit seen widening to 5.7 percent of gross domestic product in 2010 from 4.9 percent in 2009, and ballooning further to 6.1 percent in 2011 and 6.9 percent of GDP in 2012.

- CPI inflation seen averaging 7.1 percent in 2009, before slowing to an average 6.3 percent in 2010, 6.0 percent in 2010 and 5.7 percent in 2012.

- Inflation target to remain at between 3 and 6 percent but policy to be debated with central bank.

- South Africa to further relax exchange controls to reduce cost of doing business in country

SPENDING