ECONOMIC WRAP: The Budget Speech and Beyond
The Minister of Finance, Tito Mboweni on the 26th February 2020 presented the inaugural budget speech in which he detailed government’s revenue collection and expenditure strategy in its quest for sustainable social and economic development. The Minister had the unenviable position of presenting the plans to deal with the challenges faced by key state-owned entities, labour and business. challenges pertaining to widening inequality and service delivery deficiencies, as well as proposals to detail the spending and cost reduction priorities to position the economy for growth.
A few days later, the Statistician General, Risenga Maluleke, presented the 2019 fourth quarter GDP numbers confirming that the South African Economy is now in a technical recession following two consecutive quarters of negative growth. The third quarter had shown the economy shrinking by 0.8% (revised) and the fourth quarter contracted by 1.4%; this is the third recession since 1994, with seven out of the ten industries showing a contraction.
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