Analyst paints bleak picture for SA GDP growth
An economist believes the South African economy is in a far worse state than previously thought.
Dawie Roodt has been commenting after Finance Minister, Malusi Gigaba delivered his maiden Medium-Term Budget Policy Statement in Parliament yesterday.
It emerged in Gigaba’s speech that the projected revenue shortfall was higher than expected - at R50.8 billion for the 2017/18 budget, resulting in a growing deficit and a substantial debt risk hike.
ALSO READ: Gigaba places economic growth outlook at 0.7%
Roodt says this doesn't paint a pretty picture.
"How are they going to fund that? We are simply going to borrow more money and the result of that will be that the state's debts will reach new record high levels and I'm afraid the financial markets through Africa will respond negatively to this. We are going to get a downgrade pretty soon," he said.
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