SouthAfrica'seconomyestimatedtogrow1.6pctovernext3years:minister_GuangmingOnlineSouthAfricanFinanceMinisterEnochGodongwanadeliversthe2024BudgetSpeechinCapeTown,SouthAfrica,onFeb.21,2024.SouthAfrica'seconomyisestimatedtohavegrownby0.6percentlastyearandwillincreaseto1.6percentoverthenextthreeyears,GodongwanasaidhereWednesday.(PhotobyXabisoMkhabela/Xinhua)CAPETOWN,Feb.21(Xinhua)--SouthAfrica'seconomyisestimatedtohavegrownby0.6percentlastyearandwillincreaseto1.6percentoverthenextthreeyears,FinanceMinisterEnochGodongwanasaidhereWednesday.Hemadethisrevelationwhiledeliveringthe2024BudgetSpeechinCapeTown,thelegislativecapitalofSouthAfrica.Godongwananotedinhisspeechthatdespitetheimprovedglobaloutlookfor2024,SouthAfrica'snear-termgrowthremainedhamstrungbylowercommoditypricesandstructuralconstraints."WeestimaterealGDPgrowthof0.6percentin2023.Thisisdownfrom0.8percentgrowthestimatedduringthe2023MediumTermBudgetPolicyStatement,"saidGodongwana.Therevisionwasduetoweaker-than-expectedoutcomesinthethirdquarterof2023,particularlyinhouseholdconsumptionandfixedinvestment.Despitethis,"between2024and2026,growthisprojectedtoaverage1.6percent,"Godongwanasaid."Thegrowthoutlookissupportedbytheexpectedeasingofpowercutsasnewenergyprojectsbeginproduction,andaslowerinflationsupportshouseholdconsumptionandcreditextension.""But,therearealsoriskstothedomesticoutlook.Theseincludepersistentconstraintsinelectricitysupply,freightrail,andports,andhighsovereigncreditrisk.Ourchallenge...isthatthesizeofthepieisnotgrowingfastenoughtomeetourdevelopmentalneeds,"hesaid.Thefinanceministeralsosaidthebudgetdeficitforthefinancialyear2023/2024wasestimatedtoworsenfrom4percentayearagoto4.9percentofGDP."Thedeficitwillbegintoimprovefrom2024/2025toanestimated4.5percentofGDP,reaching3.3percentby2026/2027,"Godongwanasaid."Debtwillnowpeakat75.3percentofGDPin2025/2026."Toaddresschallengesthathaveheldbackthecountry'seconomicgrowth,Godongwanasaidthegovernmenthasembarkedonabroadstructuralreformagenda."Thisagendahasincludedareaslikeelectricity,logistics,water,telecommunications,andvisareforms,"headded.SouthAfricanFinanceMinisterEnochGodongwana(Front)deliversthe2024BudgetSpeechinCapeTown,SouthAfrica,onFeb.21,2024.SouthAfrica'seconomyisestimatedtohavegrownby0.6percentlastyearandwillincreaseto1.6percentoverthenextthreeyears,GodongwanasaidhereWednesday.(PhotobyXabisoMkhabela/Xinhua)Editor:DisclaimerTheviewsandopinionsexpressedinthisarticlearethoseoftheauthor's,GMW.cnmakesnorepresentationsastoaccuracy,suitability,orvalidityofanyinformationonthissiteandwillnotbeliableforanyerrors,omissions,ordelaysinthisinformation.