Xinhua Silk Road, Cape Town, February 22 (Reporter Wang Lei and Wang Xiaomei) South Africa's Finance Minister Enoch Godongwana said in Cape Town, South Africa's legislative capital, on the 21st that South Africa's economic growth rate is expected to be 0.6% in 2023. The average annual growth rate from 2024 to 2026 is 1.6%.When delivering the 2024 budget speech in the South African Parliament that afternoon, Godonguana said that although the global economic outlook has improved in 2024, South Africa's recent economic growth is still hampered by falling commodity prices and structural constraints.The South African Ministry of Finance expects South Africa's real gross domestic product (GDP) growth in 2023 to be 0.6%, down from the previous forecast of 0.8%, due to weaker-than-expected economic data in the third quarter of 2023.Godonguana said that the commissioning of new energy projects is expected to alleviate power outages, and falling inflation will promote household consumption and credit expansion, thereby supporting economic growth. South Africa’s real GDP is expected to grow on average annually from 2024 to 2026. The rate is 1.6%.Godonguana said that South Africa's budget deficit in the 2023/24 fiscal year is expected to account for 4.9% of GDP, an increase from 4% in the previous fiscal year.But the budget deficit will start to improve from the 2024/25 fiscal year, and is expected to account for 4.5% of GDP, before falling to 3.3% by the 2026/27 fiscal year.In addition, South Africa's debt-to-GDP ratio will peak at 75.3% in the 2025/26 fiscal year.He also pointed out that South Africa's domestic economic prospects still face risks, including restrictions in the power and logistics sectors and higher sovereign credit risks.South Africa’s fiscal policy will aim to support economic growth and reduce economic risks, while ensuring fiscal sustainability.The government will also continue to implement broad structural reforms to address challenges hindering economic growth.
