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 institutions and economists to about 1,5% and below, it is not unexpected that this should now be reflected in higher unemployment levels.

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 also failed to command wide support.

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 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 advantage, the discussion focused on how the economic power struggle between the US and China is changing trade landscapes throughout Africa.

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 University (NWU) Business School, says this decision now creates a welcome window of opportunity for many countries, including South Africa, to negotiate with the US for lower tariffs.

The scale of the further wide-ranging United States (US) unilateral tariff hikes announced by President Donald Trump will not only drive a huge wedge into the world’s multilateral trading system but is also bad news for the South African economy. 

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 decision that was made by the MPC on 20 March was decided by a 4 to 2 vote.

The Business School at the North-West University (NWU)’s second Pitso online seminar brought together economic experts to examine South Africa’s current financial situation. The discussion, titled Budgeting for Austerity, featured analyst and columnist Khaya Sithole, who moderated the webinar; independent economist Elize Kruger; and Sanisha Packirisamy, an economist at Momentum Investments.

The revised Budget statement presented to Parliament by Finance Minister Enoch Godongwana on 12 March, proposing a new fiscal mix of spending, borrowing and taxing as a response to the previous opposition to the 2% rise in VAT proposed in the original Budget, diverges to some extent from the parameters outlined in the original Budget.

The North-West University (NWU) Business School has established a formidable foundation and inaugurated the PhD Hub for Africa, a pioneering initiative aimed at nurturing doctoral talent and enhancing supervisory expertise throughout the continent. The PhD Hub was officially launched on Monday, 10 March 2025, during the International Conference on Green and Sustainable Development held at the Kigali Serena Hotel in Rwanda.