National Treasury Republic of South Africa – Economic Outlook, 2024

The National Treasury of South Africa's "Economic Outlook 2024" provides a comprehensive analysis of the nation's economic performance and projections, highlighting key factors influencing growth and fiscal stability. The report revises the 2024 GDP growth forecast downward from 1.3% to 1.1%, attributing the adjustment to persistent inflation and intermittent economic growth in the first half of the year. However, it notes an economic strengthening due to the suspension of power cuts since March 2024, improved confidence following the formation of a government of national unity in June, better-than-expected inflation outcomes in recent months, and reduced borrowing costs. These factors are expected to continue supporting the economy, with GDP growth projected to average 1.8% from 2025 to 2027, up from 1.2% in the preceding three years. The Treasury emphasizes the need for continued implementation of structural reforms to sustain this growth trajectory. Additionally, the report addresses fiscal challenges, including wider budget deficits and higher debt projections over the next three years, underscoring the importance of balancing development goals with fiscal sustainability.