Measures to stimulate economic growth in the nation will be made known to the general public by president Ramaphosa in three weeks time.
Jackson Mthembu, the minister in the presidency made this known while addressing journalists on the outcome of the fortnightly meeting held by the cabinet. On a clearer note, he dismissed all speculation that government was left with no option but to seek a financial rescue package from the International Monetary Fund as the economy declined by 3.2% in the first quarter of 2019, while unemployment shot up to 29% ; the highest number recorded in more than a decade. Mthembu also made it known that the cabinet was convinced at this stage, the thoughts to approach International Monetary Fund won’t be needed as the president’s recovery plan is been put together.
He said “Cabinet is concluding that plan, there have been discussions on how we grow the economy, how we respond to the low growth of our economy. All that we can say at this point in time is that cabinet is finalising its response on various packages that will speak to this matter, inclusive of how we help sectors of the economy that have potential to assist us in growing our GDP”. He laid emphasis on been prudent on financial management rather than approach IMF.
Mthembu made it known that the Finance Minister Tito Mboweni would shed more light on the ecomony situation when he presents his medium-term budget policy statement in October, including how to control the runaway public sector wage bill.
However, Analysts have pointed out the state of public finances especially the amount of public sector debt as another danger to the economy that needs to be looked into.