Budget acknowledges that the economy is not growing fast enough

In the face of a daunting combination of economic and fiscal imperatives, Minister of Finance Enoch Godongwana in his Budget Speech on 21 February gave a realistic assessment of the socioeconomic and fiscal challenges confronting South Africa, including a “high sovereign credit risk”.

This is the view of Prof Raymond Parsons, economist…

Prof Parsons previews expectations for the 2024 Budget Speech

Minister of Finance Enoch Godongwana is set to present the Budget Speech for the 2024/25 fiscal year on 21 February 2024. Providing insights into the anticipated announcements, renowned economist from the North-West University (NWU) Business School, Prof Raymond Parsons, shares his perspectives on what South Africans can expect from this…

SONA 2024: there is still “unfinished business” on the national agenda

There is still much “unfinished business” on the national agenda, including a more coherent overall economic plan for much higher job-rich inclusive growth.

In commenting on the 2024 State of the Nation Address (SONA), Prof Raymond Parsons, economist from the North-West University (NWU) Business School, points out that, as expected,…

Modest growth outlook emphasises urgency of growth-orientated policies and projects

As was expected, the Monetary Policy Committee (MPC) unanimously decided at a fourth consecutive meeting on 25 January (its first meeting of 2024) to again keep interest rates unchanged and therefore higher for longer.

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says the tone of the MPC’s…

Negative factors lead to third quarter’s GDP decline

The decline in the third quarter gross domestic product (GDP) growth to -0,2% from 0,5% in the second quarter of 2023 was worse than expected.

Stats South Africa released the GDP growth figures for the third quarter on 5 December. Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says negative factors…

South African interest rates may have peaked

As was widely anticipated, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) by a unanimous vote decided at a third consecutive meeting (and its last meeting of the year) to again keep interest rates unchanged, with the repo rate staying at 8,25%.

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

Harvard report on growth through inclusion in South Africa is timely and relevant

The all-encompassing and wide-ranging 178-page diagnostics of the South African economy embedded in the report “Growth Through Inclusion in South Africa”, prepared by Ricardo Hausmann and his team from the Growth Laboratory at Harvard University, is a timely and relevant document.

Prof Raymond Parsons, economist from the North-West…

Employment trends are encouraging, but hurdles remain formidable

The further slight decline in South Africa’s unemployment rate to 31,9% in the third quarter of 2023 is good news, and the fact that total employment is now back to its pre-pandemic levels is welcome.

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, commented on the third quarter 2023 Quarterly…

Think Tank - Unpacking the medium-term budget speech

By Mbali Skosana

The North-West University (NWU) Business School hosted a Think Tank session in Vanderbijlpark recently, where a panel of experts delved into the contents of the medium-term budget speech by the Minister of Finance. All in attendance were welcomed by Professor Linda du Plessis, NWU deputy vice-…

Public finances remain on a slippery slope

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says in the face of pressing economic and fiscal challenges, the Medium-Term Budget Policy Statement (MTBPS) offered a realistic but vulnerable fiscal picture for South Africa.

In commenting on the MTBPS that was presented to Parliament on 1 November…