Finance Minister Enoch Godongwana has cautioned that the new numbers showing an increase in unemployment from 34.4 percent to 34.9 percent indicate that the economy is under pressure and operating in a limited environment. He told Parliament on Tuesday, during the Budget debate, that the economy was confronting a variety of obstacles but was still projected to expand. Apart from the recent Statistics South Africa data of 34.9 percent unemployment in the third quarter of this year, he said the economy was still dealing with the fourth wave of Covid-19, which constituted an additional danger to the current economic dangers.
Its full influence had yet to be felt, but it would pose a significant threat. Godongwana stated that they needed to work together to bring the economy back on track. This discussion takes place against the backdrop of our country's serious economic concerns. According to Statistics South Africa, unemployment continues to rise. We are currently at 34.9 percent. This argument is taking place in the context of a bleak budgetary forecast. "Along with them, the fourth wave of the Covid-19 epidemic has resurfaced. These are the issues that our country faces. The budgetary repercussions of this fourth wave remain uncertain," Godongwana remarked. He stated that they were attempting to strike a delicate balance in order to expand the economy.
"The delicate balance we are attempting to accomplish is saving lives, protecting the vulnerable, and growing our economy so that we can have an influence on unemployment, poverty, and inequality." "We have to achieve all of this in a sustainable way," he stated. He stated that this includes economic structural improvements. According to Godongwana, the government's implementation of structural reforms will jump-start the economy. He also maintained his stance on state-owned enterprises, claiming that the government has poured billions of rands into them over the years with little results. He stated unequivocally that there will be no bailouts for SOEs. He described it as tough love and signified a departure from how the government had previously handled SOEs.
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