Johannesburg  - South African Finance Minister Trevor Manuel said Tuesday he was confident the country would ride out the international financial storm and announced a increase in government spending, while predicting slower growth.

Presenting his annual medium-term budget policy statement, Manuel said: "The storm has arrived, it is fiercer than anyone could have imagined, and its course cannot be predicted. But we saw the signs early and we took appropriate action. We can say to our people... the thunder will pass."