South Africa cuts 2026 growth forecast to 1.2%
By the AFREEQUE newsroom, based on Businessday
South Africa’s Treasury has cut its 2026 growth forecast to 1.2%, from 1.6% in February, Finance Minister Enoch Godongwana announced. The revision was presented in the medium-term budget policy statement, while economists interviewed by Business Day TV discussed its implications for the economy and public finances.
South Africa’s National Treasury has lowered its economic growth forecast for 2026 to 1.2%, from 1.6% in February. Finance Minister Enoch Godongwana presented the figure on Wednesday in his medium-term budget policy statement, according to Business Day.
Godongwana said improvements in public finances and structural reforms had helped cushion the effects of the conflict in the Middle East. However, he said these advances were not enough to support the job creation the country needs.
Business Day TV devoted a programme to the statement’s implications for the economy and public finances. It brought together Annabel Bishop, chief economist at Investec, Mpho Molopyane, chief economist at Alexforbes, and Maarten Ackerman, chief economist at Citadel.
The statement is part of the preparation of South Africa’s medium-term budget framework, presented on 18 October. It also comes after the South African Youth Council called on 21 October for measures to tackle unemployment in the Eastern Cape, and the government announced the release of 823 million rand to fight gangs and illegal mining.
Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.
