LUMKILE MONDI: Ramaphosa’s economic reform agenda could change the trajectory
President will soon show his hand through the appointment of two new deputy governors of the Reserve Bank coupled with a solid plan to turn around ailing state entities such as Eskom
The recent revision by the Reserve Bank of its economic growth forecast for the year from 1.7% to 1.3% has been supported by the IMF’s World Economic Outlook, which expects SA’s GDP to grow by about 1.2%. Any positive number emanating from gross figures should be welcomed, as it assumes the current condition will prevail in the short to medium term. However, such low levels of economic growth reinforce the existing conditions of exclusion, marginalisation and high levels of dependency on the social wage by many South Africans. After the May 8 general elections many economic reforms are expected that could change the economic trajectory of the country. Although there is an ongoing debate about the nature of land reform following the amendment of section 25 of the constitution and what the nationalisation of the Reserve Bank will entail in practice, there is broad consensus that SA is in an economic crisis. The expansionary fiscal policy of the Jacob Zuma years did not yield the ex...
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