Economy

PPS: National Budget – February 2022

The National Budget was characterised by the balance between social welfare expenditure and fiscal sustainability amid a disappointing outlook for GDP growth in South Africa. The estimate for GDP growth for 2021 was reduced from 5.1% to 4.8% and forecasted to grow at 1.8% p.a. over the next three years.

PwC commentary on VAT and indirect taxes

A responsible Budget signalling optimism

The high cost of living, fuelled by rising inflation, significant fuel price increases and a series of interest rate hikes (which are likely set to continue) have left most South Africans feeling defeated and overwhelmed.

Two per cent will never be enough

If the South African economy continues to grow at a pedestrian 2% per annum from today until net zero day in 2050, then we can be certain of three outcomes: our unemployment rate will expand to 37% by 2030; to 40% by 2030; and to 45% by 2050… It saddens me, dear reader, that I always bring such negative tidings, but the purpose of this jarring opening line is to scream from the rooftops that South Africa needs extensive and immediate structural reforms to elevate our economy to the 4-5% annual GDP growth that is needed to make a meaningful long-term dent in its unemployment measure.