July 14 (Bloomberg) -- South Africa’s government said it remains committed to its goals of halving poverty and unemployment from 2004 levels by 2014, even as it grapples with the nation’s first recession in 17 years.

The goals, adopted when a 6 percent economic growth rate was being targeted, are incorporated in the government’s medium- term strategic framework for the next five years. The plan was released in Pretoria today by Trevor Manuel, the minister in charge of a newly established government planning commission.

“The global economy is going to live through a very difficult period,” Manuel told reporters. “The challenge that presents itself to us is that we can’t continue with such high levels of unemployment as South Africa has.”

Africa’s largest economy contracted an annualized 6.4 percent in the first quarter, the biggest drop in almost 25 years, with mines and factories firing tens of thousands of workers. On July 1, Finance Minister Pravin Gordhan said he expects the economy to grow between 2.5 percent to 3.5 percent annually “for several years” once the recession ends.

That isn’t enough to address the 23.5 percent unemployment rate, the highest of 62 countries tracked by Bloomberg. On May 21, Lesetja Kganyago, the director-general of the National Treasury, said the target of reducing joblessness to 14 percent may have to be extended beyond 2014.

The global crisis “is likely to have a huge dampening effect on economic growth in our own country at least up to 2010,” the framework says.

Nothing New

There are no new initiatives contained in the plan, which expands on the government’s existing priorities, including improving the health, education and justice systems, reducing inequality and building new infrastructure.

The government may shift to planning its budget over five years instead of three, or drafting separate budgets for capital projects that span several years, to enable it to plan more effectively, Manuel said.

Manuel served as finance minister between 1996 and this May, overseeing the longest period of growth in South Africa’s history. He was appointed to his current position by President Jacob Zuma as part of an overhaul of government following the ruling African National Congress’s victory in April 22 elections.

To contact the reporters on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net

Last Updated: July 14, 2009 07:58 EDT