National Treasury says some of the economic risks identified in its February budget have now materialised.
In a statement issued in response to the International Monetary Fund (IMF) Article 4 report, Treasury says it will update its forecasts to reflect the current economic risks raised by the multi-lateral organisation.
Among the downside economic challenges that have recently materialised are electricity supply logistics constraints, higher wage settlements in the public sector, and rising borrowing costs.
The IMF report warns that the country is facing rising economic and social challenges. It projects GDP growth of 0.1% this year.
National Treasury, however, believes that a lot can still be done to arrest the situation. This includes an active debt management strategy to manage borrowing costs.
It’s also committed to continuing to prioritise the implementation of structural reforms to improve the potential growth rate of the economy.
Measures to fight crime and corruption could also help to lift the country out of its current economic quagmire.