The minister told Parliament on Wednesday that the country’s growth expectations now stood at 0.5% of gross domestic product (GDP), compared with 1.5% anticipated in February.
This was one of the most alarming takeaways from the MTBPS, according to Jameel Ahmad, FXTM global head of currency strategy and market research. Ahmad says this did nothing to help investor sentiment because it painted the same old picture that the South African economy would continue to underwhelm.
This undermines the vision of the founders of this democratic society.
But Mboweni was hailed for painting a true picture of the state of the country’s economy, although there were worries about market reactions to the country’s ballooning debt. This year’s national debt exceeded R3 trillion and is expected to rise to R4.5 trillion in the next three years.