JOHANNESBURG - Finance Minister Tito Mboweni cut the forecast for growth in the South African economy by 1% and said the expected growth was 0.5% instead of 1.5%.
Mboweni was delivering his Medium Term Budget Policy Statement in Parliament on Wednesday.
Mboweni said in his speech: "In the first quarter of this year, the South African economy contracted by a revised 3.1 per cent on a seasonally adjusted and annualised basis. As the energy constraint lifted, growth rebounded to 3.1 per cent in the second quarter. These two quarters cancelled each other out, and this year growth has been flat. There are some signs that investment spending is strengthening."
Mboweni stated that in the second quarter, growth in gross fixed capital formation rebounded to 6.1 per cent. Mining grew by 14.4 per cent. In real terms, credit growth has been positive since late 2018.
Private sector credit extension rose 6.2 per cent in September. Home loans grew 5 percent year‐on‐year, the fastest rate in some time. But corporate credit extension has softened.