‘Fragile’ economic outlook means Treasury might well lower growth forecast
The Treasury is likely to have to revise down its growth forecast for 2018, finance minister Nhlanhla Nene says. Speaking at a conference hosted by the Government Employees Pension Fund (GEPF) on Monday, Nene said: "The outlook for the economy remains fragile. The contraction in GDP growth in the second quarter of 2018 and the downward revision to the first quarter data pose significant downside risks to the Treasury’s projection of 1.5% growth presented in February." Added to this, dim business confidence, weak activity in the supply-side of the economy and constraints on household spending "will hinder a robust recovery in growth", he said. In order to make a dent in the unemployment rate which is nearing 30%, SA requires growth of 5%, Nene said. He assured that the government was implementing as many structural reforms as possible. The mining charter is expected to be finalised by November while the Integrated Resource Plan for energy is before parliament, he said. Nene also said...
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