Solidarity, the South African trade union, has suggested that while 2008 is ending on a grave note as the global recession takes hold, next year could be the start of a brighter future for South Africa.

Dirk Hermann, deputy general secretary of Solidarity, noted that 2008 had been a year of uncertainty, plagued by a worsening economy, deterioration in the country’s infrastructure, and high inflation and interest rates.

"We expect most of these trends to turn around in 2009 and there is reason for optimism. Although things will not just improve right away, the country should end 2009 on a much higher note than in 2008," said Hermann in an interview with Fin24.com.

Solidarity said the recent cut in interest rates should start the beginning of a downward cycle in borrowing costs, with rates expected to fall by between 300 and 400 basis points in 2009, bringing some much-needed relief to embattled consumers.

The union also predicted an easing in the current gloom by mid-2009. "We believe that employment will then start increasing and … the country should be in an economic upswing by the end of 2009,” said Hermann.