Zuma’s new committee to tackle ballooning deficit and moribund growth
A new committee of Cabinet ministers, reporting directly to the president, will develop proposals to stimulate the economy, as Treasury slashes its growth forecast in the medium-term budget
A presidential committee will be established to stabilise national debt after the Treasury slashed its growth forecast in half in line with the Reserve Bank, the IMF and the World Bank. The economy is expected to take another beating in 2017, with GDP growth revised down to 0.7% from a modest 1.3% projected at the February Budget Review, according to the medium-term budget policy statement (MTBPS) presented on Wednesday. Over the medium term, GDP growth is expected to increase to a muted 1.9% by 2020. Economic growth is forecast at 1.1% in 2018 and 1.5% in 2019. “The economic outlook has deteriorated significantly since the beginning of the year,” the National Treasury said. A small team of Cabinet ministers, who will report directly to President Jacob Zuma, will develop proposals to narrow the deficit, stimulate economic growth and build investor confidence. The revision comes as a result of the recession in the fourth quarter of 2016 and the first quarter of 2017, coupled with per...
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