Malusi Gigaba will take message of ‘inclusive growth’ to IMF and World Bank spring meetings
This as the IMF cuts its forecast for SA’s growth rate, with Treasury expected to do the same in the medium-term budget
Finance Minister Malusi Gigaba is championing the message of inclusive growth at the International Monetary Fund (IMF) and World Bank spring meetings, ahead of his medium-term budget policy statement on October 25.
The IMF has just slashed its forecast for SA’s 2017 growth. In its September World Economic Outlook (WEO), released this week, it cut its forecast to 0.7% from 1% before.
Treasury is also expected to revise its forecast in the medium-term budget.
Treasury said in a statement on Thursday: "Employment creation, poverty alleviation as well as advancing economic growth remains a priority for SA and the African region; therefore, the annual meetings will provide the minister an opportunity to assess the international economy, and progress on development issues such as poverty reduction."
The statement also mentioned that the World Bank was developing a new five-year strategy for SA.
Gigaba will also meet with credit rating agencies and other stakeholders amid concern that SA will be downgraded again in 2018.
The rating agencies are set to review SA again in November.
"It is important that we continue to engage these stakeholders to discuss interventions on how they can support SA’s development process, and to demonstrate our commitment towards addressing their concerns and restoring comfort and confidence through the 14 confidence-boosting measures, over and above the country’s potential to chart and inclusive growth and economic recovery programme," read the statement.
Gigaba announced a 14-point plan to revive SA’s moribund economy in July.