Economist at the North West University’s school of business Professor Raymond Parsons says during the delivery of the State of the Nation Address and budget speech, the government must send out a clear message that it has put in place measures to properly manage its public finances.
It is a new year and with it will come some uncertainty about South Africa’s economy which is not growing at a decisive pace required to tackle unemployment and poverty.
The country’s unemployment rate currently stands at 29%.
Parsons says South Africa needs to urgently break out of a low economic growth trap without falling into debt.
“There are some issues that need to be urgently addressed. We need a clear direction. … Part of that clear direction in the future is we will be getting our public finances under control and that’s a very important message. We want to fend off a negative decision from Moody’s rating agency.”
