Increased employment key to growing the SA economy | LWO Employers Organisation cautiously optimistic about MTBPS

“The plans outlined in the Medium Term Budget Policy Statement look good on paper, but the picture of the economic situation painted by the Minister of Finance is worrying,” said Dirk Schoeman, Chief Executive Officer of LWO Employers Organisation. “There is a focus on creating a prosperous economy by reducing poverty and unemployment, but that has always been the government’s strategic goal, and, unfortunately, many of our policies are counter-productive in attaining this objective.”

The Minister of Finance, Enoch Godongwana, presented the Medium Term Budget Policy Statement (MTBPS) in Parliament today. He raised concern over the decline of the GDP growth estimate of 2,1% in February compared to the real GDP growth, which sits at 1,9%. Furthermore, he expects the economy to grow at an average of only 1,6% over the next three years.

“According to StatsSA, the official unemployment statistics for the second quarter of 2022 was 33,9%. Along with the energy crisis, corruption and the government’s inability to set policies that would make it easier to do business, these factors negatively impact South Africa’s GDP, as the 1,9% growth clearly indicates,” said Schoeman.

“The only way for the government to reach its revenue targets is through economic growth along with increased employment and tax morality. Failing this, South Africa will not be able to fulfil its social-economic objectives.”