Experts debate the fiscal future of South Africa

A lively panel of experts provided a critical analysis of Minister Enoch Godongwana's Budget address during the Pitso 2025.4 discussion of the North-West University (NWU) Business School. These experts advocated for significant changes to the way South Africa creates and oversees its national budget, calling for transparency and accountability…

Economic recovery needs maximum support to strengthen upturn

The disappointing gross domestic product (GDP) growth figure of 0,1% for the first quarter of 2025, released by StasSA on 3 June, comes as no surprise, as it merely confirms several months of muted high-frequency economic data that pointed to this likely outcome.

Prof Raymond Parsons, economist from the North-West University (NWU)…

Reduction in interest rates can have a significant positive impact

The widely anticipated decision by the Monetary Policy Committee (MPC) to resume its interest rate-easing cycle by reducing rates by another 25 basis points (bps) is the right one.

Prof Raymond Parsons, economist of the North-West University (NWU) Business School, says the MPC decision of 29 May is welcome recognition of the changed…

Latest Budget provides foundation for building fiscal sustainability

Finance Minister Enoch Godongwana’s revised third Budget is a pragmatic one, given the current circumstances.

This is the view of Prof Raymond Parsons, economist from the North-West University (NWU) Business School. In commenting on the third Budget presented to Parliament on 21 May, Prof Parsons says that, as was stressed by the…

Unemployment level raises red flag about weak growth performance

The 1% rise in the unemployment level in the first quarter of 2025 raises another red flag about South Africa’s weak growth performance.

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says with the gross domestic product (GDP) growth forecasts for 2025 having been progressively reduced by various…

No increase in VAT is the right decision

The decision by the National Treasury not to increase value-added tax (VAT) on 1 May is the right one in the current circumstances.

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says after an intensive debate a rise in VAT was eventually seen to be unnecessary, and economically and politically it…

Predicted growth not good enough for South Africa

The bad news from the latest assessment by the International Monetary Fund (IMF) of the impact of trade wars and policy uncertainty on the world economy is not unexpected. It nonetheless highlights the extent of the economic damage anticipated by recent unbridled United States of America (US) protectionism and its wider consequences.

In…

African economies should adapt to global challenges amid US-China tariff wars

In a timely Pitso webinar hosted on Friday, 11 April, the North-West University (NWU) Business School featured distinguished panellists who discussed the vulnerable status of African economies caught in the crossfire of escalating international tariff wars. As countries on the continent compete for both economic sovereignty and competitive…

Trump’s decision creates a window for negotiations

The unexpected decision by President Donald Trump to suspend the reciprocal United States (US) tariffs on non-retaliatory countries for 90 days pending further negotiations has prompted a strong rebound in financial markets and a modification of previous gloomy economic forecasts.

Prof Raymond Parsons, economist from the North-West…

High policy uncertainty levels reason for unchanged interest rates

The decision by the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) to leave the repo rate unchanged highlights the role of non-model-based judgement in policy choices, especially in current uncertain circumstances.

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says this…