South African Finance Minister Malusi Gigaba warned South Africa that it faces tough budget decisions this year as the country has entered its first recession since 2009.
“Going into the October medium budget, the country is far from achieving its growth target,” states Gigaba.
“The economy has just entered into a recession after several years of slow growth. Lower than expected growth is likely this year which will put a strain on our fiscal framework.”
He says the country needs to urgently begin reducing poverty, unemployment and inequality.
Malusi Gigaba was speaking at the Thomson Reuters Economists Awards at the JSE this morning.