Senior economist at the Alternative Information and Development Centre Dick Forslund says he supports Finance Minister Tito Mboweni’s projection that South Africa will see 3.3% economic growth at the end of this year.
Forslund says there’s strong evidence to support Mboweni’s projection but adds that government must create conditions to support it.
There is also speculation that sectors such as manufacturing will improve as the year progresses.
“There will be an increase in the economy, we could even come back to the level of 2017 and 2018. This projected 3.3% starts from a very low level. You need a programme for investment in basic infrastructure to deal with the water crisis, the crisis at schools. The government needs to deal with it because it is the only one that can deal with mass unemployment,” says Forslund.
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Earlier this year, Mboweni delivered the annual Budget Speech, saying government plans to make things better by removing structural constraints that obstruct growth.
The minister states that in the short term, structural reforms to promote economic recovery will focus on speeding up the expansion of electricity generation, creating jobs, rolling out infrastructure and supporting manufacturing and beneficiation.
Budget 2021 | Unpacking Minister Mboweni’s speech