CAPE TOWN - Finance Minister Enoch Godongwana has cut South Africa's growth forecast to 1.2% for this year, down from February’s 1.6% projection.
Presenting the Medium-Term Budget in Parliament on Wednesday, Godongwana warned domestically risks remain elevated.
This as he cited prolonged conflict in the Middle East, alongside El Niño and its likely impact on producer costs and output, which he believes could weaken domestic growth.
"Domestic economic activity has already lost some momentum, especially in export-linked sectors." he said.
Godongwana further noted that growth remains sluggish, even as fiscal stability improves.
As such, he said government is betting on structural reforms, stronger state capacity, and infrastructure investment to accelerate growth.
“If we stay the course, growth could exceed 3 per cent per annum,” Godongwana added.