Haberler      English      العربية      Pусский         Kurdî      Türkçe Delivering News and Insights Around the World Keltis
  En.Haberler.Com - Latest News
SEARCH IN NEWS:
  HOME PAGE 15/07/2020 00:01 
27.02.2020 00:27 News >> South Africa Cuts 2020 Economic Outlook By Half

South Africa Cuts 2020 Economic Outlook By Half

Government promises to reduce high growth in public sector wage bill and national debt.

South Africa announced Wednesday that it has cut its economic growth forecast for 2020 by around half.
"We forecast that the South African economy will grow by 0.9% and inflation will average 4.5% in 2020," Finance Minister Tito Mboweni said in a televised budget speech from parliament in Cape Town.
Last year, Africa's most industrialized economy projected economic growth of 1.7% in 2020. But a number of factors, including a revenue shortfall, debt and persistent electricity shortages, have stagnated growth.
"Over the next three years, we expect growth to average just over 1%," Moboweni said, adding "a stable supply of electricity will be our number one task."
South Africa has been experiencing rolling power cuts for months as state power utility Eskom, which supplies nearly 95% of the country's electricity, struggles with ailing coal-fired power plants.
But Moboweni expressed optimism that over the next 18 months, South Africa's economy might get a number of jumpstarts to create growth due to conducive strategies such as a recently announced reduction in interest rates and impending change to the electricity regulatory framework.
He also announced that the state will cut around 160 billion rand ($10.5 billion) from civil servants' pay in the next three years to reduce public debt.
He also called for controlled spending for government employees, including using economy class flights for those traveling on government duty.
He said reducing pay rises and promotions of civil servants will enable the government to save 37.8 billion rand ($2.4 billion) in the next financial year.
"Mr. President, you have directed your government to deal with wasteful expenditure. This is a vital step in restoring the confidence of the public in the government. We must get more value for our money," he said.
He also noted that there will be a shortfall in revenue collection this year, expecting to collect 63.3 rand billion ($4.1 billion) less than projected. This year's budget deficit is forecast at 6.8% of gross domestic product (GDP), the widest in 25 years, hence treasury's move to reduce spending. -



        Latest News
Vans, Planes Spread US Awareness Of Coup Bid In Turkey -53 minutes ago...
Campaign comes on eve of commemoration of 2016 defeated coup attempt staged by Fetullah Terrorist Organization.
Turkey: Terrorist Who Murdered 5 Civilians Neutralized -53 minutes ago...
Durmus involved in 2 bomb attacks this April and June which killed 5 civilians.
Hamas: Al-Arabiya Channel Leading Zionist Campaign -23 minutes ago...
Campaign aimed at ‘affecting the Palestinian resistance,’ according to resistance group.
24 Houthi Rebels Killed In Clashes: Yemeni Army -23 minutes ago...
Rebels killed trying to infiltrate areas in east of Al Hudaydah province, says military.
Trump Drops Plan To Limit Student Visas During Pandemic -23 minutes ago...
Surprise announcement comes as oral arguments were to begin in case brought by universities.

 
      Top News
Trump Drops Plan To Limit Student Visas During Pandemic Trump Drops Plan To Limit Student Visas During Pandemic
Turkey's COVID-19 Medical Supplies Reach Kazakhstan Turkey's COVID-19 Medical Supplies Reach Kazakhstan
Russia: Income From Gold Export Exceed Gas Sales Profit Russia: Income From Gold Export Exceed Gas Sales Profit
'Severe Rights Issues In US Due To Economic Disparity' 'Severe Rights Issues In US Due To Economic Disparity'
US Supreme Court Allows Federal Executions To Resume US Supreme Court Allows Federal Executions To Resume
'Turkey Stands With Baku Amid Clashes With Armenia' 'Turkey Stands With Baku Amid Clashes With Armenia'
Morocco Imposes Lockdown In Tangier Amid Virus Outbreak Morocco Imposes Lockdown In Tangier Amid Virus Outbreak
South Sudan's Lack Of Budget 'Extremely Worrying' South Sudan's Lack Of Budget 'Extremely Worrying'
WHO To Probe Origins Of COVID-19 Worldwide, China Says WHO To Probe Origins Of COVID-19 Worldwide, China Says
US Produces, Consumes Record High Natural Gas In 2019 US Produces, Consumes Record High Natural Gas In 2019