Latest news with #FrankBlackmore
The Citizen
6 days ago
- Business
- The Citizen
Reserve Bank could cut repo rate on Thursday, but will it decide to?
Although economists already said in March that they do not expect the repo rate will be cut, inflation is lower than they thought. While some economists believe that the South African Reserve Bank (Sarb) has room to cut the repo rate on Thursday, 29 May, the question remains whether the central bank will cut interest rates. Frank Blackmore, lead economist at KPMG, says there is a difference between what he thinks the Monetary Policy Committee (MPC) of the Sarb will do and what he believes it should do. 'The MPC has made it clear that its decisions are data-dependent, relying on current inflation readings as well as future inflation expectations. The latest inflation rate of 2.8% is well below the midpoint of its target of 4.5% and even below the lower level of the 3% to 6% inflation target range. 'This suggests that inflation expectations for 2025 remain muted, which would typically support a further repo rate cut of potentially by 25 basis points tomorrow.' ALSO READ: Repo rate: Will Reserve Bank cut or err on side of caution? Market volatility subsided, but uncertainty remains – KPMG economist He points out that much of the recent market volatility, driven by uncertainty around tariffs imposed by the US administration, has also subsided. 'Markets have generally returned to levels seen before the tariff announcements earlier in the year. 'However, meanwhile the South African economy is struggling to grow. Initial optimistic forecasts of just under 2% have been revised down to around 1%. In this context, any policy support, such as a repo rate cut, would be welcome. 'But the uncertainty surrounding US tariffs has merely been deferred, allowing time for negotiations with various trading partners. As with the March MPC meeting, we may see another decision to hold rates steady until there is greater clarity regarding the outcome of trade negotiations, tariffs and potential retaliatory measures globally and for South Africa.' Therefore, he says, although the inflationary backdrop is favourable for a reduction in the repo rate, downside risks remain. 'These risks may justify maintaining the current monetary policy stance until trade and geopolitical uncertainties ease or become more predictable. I therefore lean 60:40 in favour of the MPC holding rates in May.' ALSO READ: Inflation for April only 2.8%: Is a repo rate cut coming next week? More favourable inflation outlook creates scope for more rate cuts – Absa economist Miyelani Maluleke, senior economist at Absa, said during a discussion on Absa's quarterly perspectives that the more favourable inflation outlook creates scope for more repo rate cuts. 'Since the start of its easing cycle in September last year, the MPC consistently struck a cautious tone, expressing concern about elevated uncertainty. 'After delivering a cumulative 75 basis point easing, the MPC decided in a 4:2 vote split to keep the repo rate unchanged in March. In our view, developments since the last MPC meeting created more scope for easing the repo rate. 'The inflation outlook has improved, while evidence points to disappointing growth momentum in the first quarter. There is no doubt that uncertainty remains elevated amid the ongoing big global policy shifts. 'However, we view these uncertainties as being more relevant for the timing of the rate cuts rather than arguing for the rate cuts themselves. As a baseline, we have pencilled in a 25 basis points repo rate cut for May, to be followed by another 25 basis points in July. ALSO READ: Reserve Bank cuts repo rate but no promises for rest of 2025 Expect a 25 basis points repo rate cut – Bank of America economist Tatonga Rusike, Sub-Saharan Africa economist at Bank of America, says according to the bank's South African Financial Conditions Indicator, the monetary policy stance largely stayed in neutral territory after the global financial crisis, turned accommodative during Covid and turned tight since 2023. 'We think the monetary policy remains tight because the Sarb's repo rate cuts have been slower than inflation deceleration. Indeed, inflation is below target while the Sarb policy rate is still to get to neutral level. We expect that the Sarb will cut the repo rate twice in 2025, taking the repo rate to 7%.' ALSO READ: Caution wins the day as Reserve Bank decides against repo rate cut Repo rate will remain unchanged – FNB economist Koketso Mano, senior economist at FNB, also says the weak economic environment will weigh on pricing power and sustain space for easier monetary policy and a cut in the repo rate. 'However, a turbulent global environment and risk aversion, especially with local fiscal slippage, will likely keep the Sarb cautious. 'We predict that the repo rate will remain unchanged at the May meeting, but apart from a wait-and-see approach that caters for global uncertainties, there is ample space for the MPC to continue cutting interest rates.' ALSO READ: South Africans losing their homes due to high repo rate MPC will cut repo rate by 25 basis points – Anchor economist Casey Sprake, economist at fund manager Anchor, says from a macroeconomic perspective, the latest inflation data strengthens the case for a cut in the repo rate. 'With core inflation easing, wage growth muted, and consumer demand soft, real interest rates remain in restrictive territory. 'This means that current monetary policy is still exerting a significant dampening effect on the economy. As such, we expect the Sarb to cut the repo rate by 25 basis points at its upcoming MPC meeting. 'The likelihood of a third rate cut later in 2025 remains evenly balanced at this stage, depending on a volatile mix of domestic and international factors, including global commodity prices, currency movements and geopolitical risks.' ALSO READ: Why slow repo rate easing is apt Economist: Repo rate cut likely, but… Sanisha Packirisamy, chief economist at Momentum Investments, says with inflation remaining subdued at the start of the second quarter and signs of a softer inflation outlook due to lower oil prices, a stable currency, weaker economic growth and the scrapping of a Vat hike which triggered Budget 3.0, the Sarb is likely to revise its annual inflation forecast down from 3.6% for 2025. 'The median consensus inflation expectation by Reuters has fallen from 4.1% for 2025 at the start of the year to 3.7% in the April survey. A softer inflation outlook points to an increased likelihood of a repo rate cut tomorrow. 'While the bias is for another repo rate cut thereafter, we note that the MPC will likely maintain a cautious approach to cut the repo rate too far below the neutral level given ongoing global and local risks.' She says with a less pronounced demand shock, the imported deflation from China to South Africa will likely be less. 'The forward-rate agreement curve on 21 May fully priced in one 25 basis point rate cut by year-end, but not in the May meeting. 'This represents a scaling back of expectations from two cuts priced in at the end of April, likely reflecting shifting expectations for US monetary policy, as recession fears eased.' ALSO READ: What lowering the inflation target will mean for SA Repo rate decrease below neutral level of 7.25%? However, she says, a decrease in the repo rate significantly below the Sarb's estimated neutral level of 7.25% would likely require a global recession. 'The recent de-escalation in US-China trade tensions reduces the likelihood of such a scenario and, in turn, the likelihood of the Sarb cutting the repo rate far below neutral, in our view. 'Global fund managers' expectations for a so-called hard landing in the next 12 months pulled back to 26% in Bank of America Merrill Lynch's Fund Manager Survey in May from 49% in April 2025. In addition, the comment from the deputy finance minister that an announcement on the inflation target will be made 'soon' limits the scope for further interest rate cuts.'
The Citizen
21-05-2025
- Business
- The Citizen
Sensible or underwhelming? Economists react to Godongwana's Budget 3.0
After the minister tried to push though VAT increases in his first two budget attempts, Budget 3.0 will still affect citizens' pockets. It was indeed third time lucky for Minister of Finance Enoch Godongwana when he delivered Budget 3.0 in parliament on Wednesday afternoon with the blessing of all the parties in the government of national unity. Frank Blackmore, lead economist at KPMG, says probably the most impressive thing about Budget 3.0 was that we now have a budget at all, although the contents were a bit underwhelming. 'There were many questions about what we are going to do with the R75 billion deficit over the medium-term period with no VAT increase. That was answered by this budget in the form of: some increases in the fuel levy of 15-16 cents per litre; an increase in borrowing with debt going up to 77.4% of gross domestic product (GDP), 1.2% more than in Budget 2.0; no expansion of the zero-rated food basket; reduced expenditure over the Medium Term Expenditure Framework (MTEF) period; the budgets of frontline services such as health and education growing, but by less than the previous budgetary amounts; some additional investment will go to Sars to switch those assets in order to collect more revenue. ALSO READ: Budget 3.0: not austerity budget, but a redistributive budget Not much thought about issues confronting SA Blackmore says it seemed that the budget was focused on these points without dealing with the issues confronting South Africa at this point. 'There were reductions in a lot of areas that were obviously necessary due to lower revenues, except for the public sector wage bill and debt deficit which are increasing.' He says the negatives in Budget 3.0 are: the increased debt and deficit taking more resources away from frontline services and economic growth initiatives, such as the social wage the reduction in the growth of non-interest expenditure no real increase in spending to grow the economy a mention that new tax proposals will come in for 2026 to cover an additional R20 billion gap for the full cost for that period. He did not find much on the positive side but says the public private partnerships and continuing structural reforms, as well as Operation Vulindlela Phase 2 are positive, but are nowhere near large enough to make a meaningful difference at this point to the growth outlook. ALSO READ: Godongwana cuts government spending to offset VAT shortfall Budget 3.0 a more realistic picture of SA's macroeconomic outlook Jee-A van der Linde, senior economist at Oxford Economics Africa, says Treasury's downwardly revised GDP growth projections and higher debt-to-GDP ratios paint a more realistic picture of South Africa's macroeconomic outlook. He says it is a positive takeaway that gross loan debt projections have not increased since March and Treasury still expects debt levels to stabilise, although at a higher level. Gross loan debt is expected to increase from R5.69 trillion in 2024/25 to R6.82 trillion in 2027/28. 'Meanwhile, debt-service cost projections were lowered by R1.8 billion over the MTEF period compared to the March 2025 Budget. South Africa's debt service costs remain alarmingly high at R1.3 trillion over the MTEF and we expect it to continue rising rapidly over the forecast period. 'South Africa's deteriorating debt-to-GDP ratio remains a concern and we continue to maintain that gross government debt will reach 80% of GDP in the near term. The sustainability of South Africa's fiscal outlook hinges on economic growth accelerating in the near term, as fiscal consolidation will prove challenging amid elevated spending pressures.' Was it third time lucky for Godongwana? Van der Linde says Budget 3.0 is more sensible and depicts a stark picture of South Africa's finances. 'Markets will welcome Treasury's commitment to fiscal consolidation. 'While not of its own making, Treasury's credibility has been unduly dented as a result of the budget wrangling. Political parties have been climbing over each other trying to claim credit for Treasury reversing course on the tax proposals that scuppered the first and second budget attempts.' ALSO READ: Budget 3.0: Opposition parties clash over impact on poor Very high execution risk Patrick Buthelezi, economist at Sanlam Investments, says the execution risk for the budget remains very high as many spending pressures require funding, such as closing the gap created by a freeze on PEPFAR support, political party funding leading up to the local government elections and national social dialogue. 'Given the projected economic growth outlook, the pressure on the fiscus can be expected to continue. The finance minister hinted that revenue-raising measures might be introduced in the 2026 budget. The GNU needs to reach consensus on viable revenue-raising proposals, including expenditure cuts.' Tertia Jacobs, treasury economist and fixed income specialist at Investec, says for her a key takeaway is that the GNU and Treasury continue to stick to fiscal consolidation. 'Any new increases in spending must be financed by higher tax increases and the new spending increases are allocated between infrastructure and frontline services as well as Sars getting a bit more money because they will become more important in widening the tax base in coming years. 'All in all, the budget is probably as good as we can get in the context of sluggish growth, but these are indications that the GNU and the ANC are willing to work together. ALSO READ: Budget 3.0: Alcohol and cigarette prices will increase — here's by how much Commitment to stabilising government debt Dr Elna Moolman, head of South Africa macroeconomic research at the Standard Bank Group, says in line with their long-standing expectation, all three budgets this year remained committed to stabilising government's debt-GDP ratio. 'The negative revenue impact of backtracking on the VAT increases as well as the weaker economic growth trajectory is counteracted, as we expected, by a combination of revenue and spending adjustments. 'The confirmation of government's commitment to fiscal consolidation, with the debt-GDP ratio peaking this year and bond issuance kept unchanged, should provide some reassurance to financial markets, as we expected. 'The macroeconomic policy reviews and fiscal reforms, alongside ongoing traction with Operation Vulindlela's growth-supportive reforms, also underpin likely fiscal and growth improvements in the medium term. 'However, entrenched investor concerns about adverse fiscal and growth risks will not be negated and notwithstanding the imminent peak in the debt-GDP ratio and unchanged nominal debt trajectory, investors will emphasise yet another increase in the debt-GDP trajectory that will limit the potential positive financial market impact from any positive fiscal developments.'
IOL News
16-05-2025
- Business
- IOL News
South Africa's budget 3. 0 predictions: tough choices lie ahead
Frank Blackmore, Lead Economist at KPMG South Africa, has highlighted a key takeaway: the anticipated increase in Value Added Tax (VAT) will no longer materialise, forcing the government to recalibrate its revenue expectations. Image: GCIS As South Africa braces for the upcoming budget 3.0, industry experts are closely examining the fiscal landscape, drawing attention to the critical decisions poised to impact the nation's economic future. Frank Blackmore, Lead Economist at KPMG South Africa, has highlighted a key takeaway: the anticipated increase in Value Added Tax (VAT) will no longer materialise, forcing the government to recalibrate its revenue expectations. Previously outlined in budget 2.0, the revenue anticipated from a VAT hike has now vanished. This development poses significant implications for the government's fiscal targets, particularly its commitment to achieving fiscal consolidation. Without the ability to increase public debt through borrowing to meet expenditure needs, the government finds itself cornered, necessitating cuts across various sectors. The pressing question, as noted by Blackmore, is: 'Where will these expenditure cuts occur?' With growth remaining a paramount objective for the budget—central to enhancing employment rates and boosting GDP—the government must tread cautiously. The infrastructure spending, fundamental to fostering long-term economic growth, cannot be sacrificed. Likewise, with a strong focus on the social wage, cuts to public services and grants are also off the table. This leaves limited avenues for budget slashing, underlining the complexity of the government's predicament. 'As we look forward, there are numerous opinions regarding potential cuts,' Blackmore stated. 'We anticipate scrutiny around the size and costs of the state, provoking essential debates on where reductions should take place.' In the interim, the potential for policy adjustments remains in play. The proposals unveiled in budget 2.0 aimed at mitigating the impact of the now-derailed VAT hike, especially for lower-income households, are still on the table. This included considerations for tax adjustments on fuel, increases in zero-rated items, and only partial adjustments to personal income tax brackets. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ However, without the VAT increase, it's uncertain whether these provisions will proceed as planned. Blackmore predicts a rise in fuel prices and potential reductions in zero-rated items, as well as little to no change in tax brackets. This scenario presents a subtle yet impactful pathway for the government to bolster personal income tax revenues, thereby compensating for revenue shortfalls stemming from expenditure cuts. As the nation awaits the unveiling of budget 3.0, the discussions surrounding these predictions highlight the intricate balance of maintaining economic growth while adhering to fiscal discipline. With various stakeholders eagerly watching, the pressure mounts on the government to deliver a budget that meets both its financial commitments and its societal responsibilities. Frank Blackmore, Lead Economist at KPMG. Image: Supplied. BUSINESS REPORT Visit:
The Citizen
24-04-2025
- Business
- The Citizen
Economists welcome scrapping of VAT increase
Scrapping the VAT increase will slightly affect inflation, but government will have to find the money elsewhere to balance the budget. Economists have welcomed the scrapping of the VAT increase but also warn about the fiscal implications. Frank Blackmore, lead economist at KPMG, says scrapping the VAT increase means that the economy is spared a general increase in prices due to the VAT increase. 'This means consumers will have marginally more money or disposable income to spend as they choose, which is a good thing given the cost-of-living pressures largely due to sub-optimal service delivery and price pressures from regulated prices are already a reality for most South Africans.' However, he points out that it also means that the estimated revenue of between R10 billion to R13.5 billion, depending on whether zero-rated items are considered or not, would now not be collected requiring cuts in expenditure elsewhere in the budget to make up for it. 'Hopefully, these expenditure cuts can be made to non-critical service delivery areas, such as public sector marketing, catering, travel and personal protection budgets, as well as reviewing the size of cabinet as opposed to public services such as health, education, safety and security.' ALSO READ: A R1 billion U-turn: Scrapping the VAT increase leaves no winners, just absolute chaos Reversal of VAT increase shows GNU works Maarten Ackerman, chief economist at Citadel says the good news about the reversing of the VAT increase is that it first of all shows that the Government of National Unity (GNU) survived this kind of gridlock. 'I think it is very important for South Africa that we could achieve that. It will probably make the GNU stronger going forward in terms of working together to find solutions for the country's money problems.' With the VAT increase out of the equation, what about inflation? Ackerman says it will be slightly positive for inflation, but even before the VAT increase was scrapped, the inflation data came out this week at 2.7%, screaming for a rate cut from the Reserve Bank. Farzana Botha, senior communications manager at Sanlam Risk and Savings, says Sanlam welcomes government's decision to withdraw the VAT increase and recognise it as a timely relief for consumers amid ongoing economic challenges. 'Maintaining the VAT rate at 15% helps preserve household purchasing power, especially for lower- and middle-income families who are most affected by cost-of-living pressures. This move supports consumer confidence and spending, which are vital for economic recovery and growth. 'However, we acknowledge the fiscal implications of this decision, including the anticipated revenue shortfall of approximately R75 billion over the medium term. It is crucial for the government to implement prudent expenditure adjustments to maintain fiscal stability.' ALSO READ: VAT U-turn: How businesses felt the brunt of political roulette Decision to scrap VAT increase was the right one under circumstances Prof Raymond Parsons, economist at the NWU Business School, says the decision not to increase VAT on 1 May is the right one in the current circumstances. 'After an intensive debate, an increase in VAT was eventually seen as unnecessary and economically and politically it also failed to command wide support. 'An unchanged VAT rate brings welcome relief and certainty to business and consumers and to that extent it is confidence-building. However, this does not mean that South Africa is fiscally out of the woods. Future risks to fiscal policy remain.' He says successfully managing the fiscal risks now depends on a credible fiscal strategy to balance the books being embodied in the third budget to be presented shortly. Parsons points out that the advantages of the delayed budget and the controversy that surrounded it are three-fold. 'They identified better options available to balance the budget on both its spending and tax sides will subject future budgets to a more intensive consultative process and again emphasised the urgent need for much higher economic growth. 'It is now even more necessary, especially given current global developments, for South Africa to speedily accelerate key structural reforms to expand the economy. Fiscal sustainability must be reinforced by stronger economic growth that enlarges the tax base and boosts tax revenues.' ALSO READ: Treasury reverses proposed VAT hike, will remain at 15% Reversing VAT increase good for economy and consumers Evádne Bronkhorst, senior manager for tax consulting at Forvis Mazars in South Africa, welcomed Treasury's decision to withdraw the proposed VAT increase. She believes this move, although it creates a R75 billion revenue shortfall over the medium term, is a step in the right direction for consumers and the broader economy. 'This decision helps to ease inflationary pressures and prevents additional strain on consumer spending, especially for low-income households.' However, she warns that the financial gap it creates will increase pressure on Sars to drive revenue collection through improved debt collection and compliance measures and by broadening the tax base technology. Bronkhorst also cautions that rolling back the already-implemented VAT changes will place a heavy administrative burden on small businesses. Many had already adjusted their systems and pricing and will now need to reverse those changes. 'While the reversal brings some short-term relief, it is not enough to truly stimulate the South African economy. We urgently need expenditure reallocation and fiscal accountability that leads to real, sustainable change.' ALSO READ: Where will the minister find the money to make up for scrapping the VAT increase? No more VAT increase good news, but not a solution Alan Mukoki, CEO of the South African Chamber of Commerce and Industry (SACCI), also welcomed the decision to scrap the VAT increase, but says while this is a positive move it is by no means a resolution of the bigger problem with South Africa's finances. 'We still have a serious problem with how to deal with the budget and in particular the deteriorating debt servicing costs to revenue. The situation is not sustainable and we appreciate the difficulty the minister of finance has faced in balancing his revenue and expenditure options. 'We do not underestimate the complexity of the problem. This is no longer about the political parties or GNU. This is South Africa's problem that will require all key stakeholders to spend more time looking for solutions instead of amplifying problems and differences.' SACCI was opposed to the VAT increase because it would make goods and services more expensive and this will contribute to the loss of business confidence and aggravate slow economic growth and unemployment. ALSO READ: Economic ramifications of VAT increase: higher inflation, lower GDP Not enough work went into decision for VAT increase 'We are not yet convinced that enough expert work has been undertaken to investigate and look at expenditure throughout the government service. Other than a budget being a budget, it should also serve as a management information tool that gives insight that leads to management action. 'Data and analytics will help us to get a grasp of what is really happening with expenses and at this time we are not clear on this aspect. To get the level of granularity required would need an external resource to undertake the work.' Mukoki points out that Treasury staff are engaged with their day to day work and may not be the appropriate resource in this case. 'This work should encompass all levels of government and not just national departments as local government actions have a significant impact on the economy. We need this work to be commissioned as a matter of urgency.'
IOL News
24-04-2025
- Business
- IOL News
VAT victory should see Finance Minister Enoch Godongwana adjusting projected growth rate
Frank Blackmore, lead Economist at KPMG, told Business Report that he thinks this was good news for most South Africans as it spares them an additional stress of increasing prices on numerous goods throughout the economy in an environment where they already facing a very high cost of living. Image: Se-Anne Rall / IOL On Thursday morning South Africans woke up to the news that Finance Minister Enoch Godongwana has withdrawn the proposal to hike vat by 0.5 basis points this year to be followed by a potential 0.5% next year. Frank Blackmore, lead Economist at KPMG, told Business Report that he thinks this was good news for most South Africans as it spares them an additional stress of increasing prices on numerous goods throughout the economy in an environment where they already facing a very high cost of living. He added that the VAT U-turn was down to mainly two reasons. "The first reason was obviously the social backlash that was received on this proposal and the second was that the revenue authorities managed to collect an extra sort of R10 billion from the previous year. Therefore, there was no need to institute a vat hike to get this additional revenues," Blackmore said. "Even in the planning, the additional revenues that would have come from this half a percentage point of our time could have been around R13.5 billion but if you take the zero rated goods into account that reduces to around this R10 billion making it a moot point for this budget. I think it's important to note that South Africa is also facing a lot more stress given the pressures put on it and by the global trade war that is currently ongoing," Blackmore said. "I think the next thing from the budget that will be adjusted will be the growth rate in Minister Godongwana's budget that had been tabled. The growth rate for this year for South Africa was at 1.9% but given the events in the US of the imposition of tariffs as well as our local missteps in terms of policy and management, I think we'll be lucky to get close to that 1% growth this year. Therefore, expectations of revenue would be paid back along with that growth rate for this particular year. I think it's also important that with the cancellation of this proposed vat hike that the extra money is found through expenditure, savings, and on unnecessary areas of expenditure and does not come importantly from service delivery which is relied on by most South Africans in terms of health, education, social grants and other public sector delivery that is expected," the economist added. "I think it is vital for that to happen that costs or cut and expenditures is left alone in order to create some kind of momentum in terms of economic growth in future," Blackmore added. The Congress of South African Trade Unions (Cosatu) on Thursday said it applauds the Minister's announcement that government will scrap the proposed VAT hike of 0.5%. The trade union added that this will provide relief to millions of workers who have been struggling to cope with the rising costs of living. "Working- and middle-class families spend most of their income on transport and electricity whose increases far exceed CPI. A VAT hike and not adjusting Personal Income Tax (PIT) brackets for inflation would simply make their lives even more unbearable. Whilst this year's Parliamentary budget processes have been anything but elegant, we are pleased that government led by the African National Congress, has shown the humility to listen to COSATU, other organisations and society, and the political maturity to respond decisively. These are signs of a vibrant democracy and a signal that government must listen to the frustrations of working-class communities," Cosatu stated. Meanwhile, Abigail Moyo, spokesperson of the trade union UASA also welcomed the announcement. "The decision is a victory for the hardworking people of South Africa, particularly the poorest of the poor, against the backdrop of limited growth prospects in an uncertain geopolitical and global environment. We have seen all investment strategies presented before, as well as the increased taxes over the years. Yet, the government has not succeeded in growing the economy or reducing unemployment and the national debt to a level that harnesses economic growth and development," Moyo said.
