National Treasury has revised South Africa's economic growth projection for 2025 downward to 1.2 percent, a slight decrease from its previous forecast. Finance Minister Enoch Godongwana presented the updated outlook, citing weaker performance in the year's first half and a subdued global environment as contributing factors. Despite this adjustment, the department anticipates a strengthening recovery, with medium-term growth expected to average 1.8 percent.
The statement emphasized that the government is meeting its fiscal targets, which is intended to bolster macroeconomic stability and reduce borrowing costs. This stability, alongside falling inflation and ongoing structural reforms, is seen as foundational for reviving investment and employment. The strategy rests on four key pillars: maintaining macroeconomic stability, accelerating structural reforms, building state capability, and increasing public infrastructure investment.
Treasury identified potential downside risks, including further delays in implementing critical reforms within the energy and logistics sectors. However, officials remain optimistic that the current path will support a gradual economic recovery and foster improved investor confidence over the medium term.
The statement emphasized that the government is meeting its fiscal targets, which is intended to bolster macroeconomic stability and reduce borrowing costs. This stability, alongside falling inflation and ongoing structural reforms, is seen as foundational for reviving investment and employment. The strategy rests on four key pillars: maintaining macroeconomic stability, accelerating structural reforms, building state capability, and increasing public infrastructure investment.
Treasury identified potential downside risks, including further delays in implementing critical reforms within the energy and logistics sectors. However, officials remain optimistic that the current path will support a gradual economic recovery and foster improved investor confidence over the medium term.
