Enoch Godongwana presents South Africa's 2025 Budget: GDP growth forecast revised down
Minister of Finance, Enoch Godongwana, tabled the 2025 Budget Speech during the National Assembly plenary at the Cape Town International Convention Centre.
In presenting the third iteration of the National Budget, Finance Minister Enoch Godongwana said that gross domestic product (GDP) for the year would come in at 1.4% this year, down from a previously predicted 1.9%.
Recently, ratings agency Moody's dropped South Africa's expected GDP growth to come in at 1.5%, down from its initial 1.7% figure, while the South African Reserve Bank previously anticipated 1.7% and the International Monetary Fund had an estimate of 0.8%.
Last year, overall growth was 0.6%. A government and business partnerships had been aiming for 3% this year to create a million jobs.
Ahead of the National Budget, Investec chief economist, Annabel Bishop, said that 2025 is likely to see GDP growth of 1.3% year-on-year, revised down from 1.8% at the start of the year.
The Bloomberg economic consensus for GDP growth this year is currently 1.4% year-on-year, she noted.
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