National Treasury is expecting the country’s economy to grow by 1.3% this year.
It estimates that the real growth figure for 2023 will be revised down to 0.6 from the 0.8 estimated in the 2023 mid-term budget.
The revision is due to the blackouts and the country experiencing an energy crisis.
Finance Minister Enoch Godongwana says government‘s continued operational failures in electricity supply and freight rail as well as at ports remain a constraint on output.
He delivered the Budget Speech in the Cape Town City Hall yesterday.
“South Africa’s near-term growth remains hamstrung by lower commodity prices and structural constraints. We estimate real GDP growth of 0.6% in 2023. This is down from 0.% growth estimated during the 2023 MTBPS. The revision is due to weaker-than-expected outcomes in the third quarter of 2023, particularly in household consumption and fixed investment.”
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