Overview
- Finance Minister Enoch Godongwana’s MTBPS announced a 3% inflation target with a 2%–4% tolerance band.
- The rand strengthened to about 17.05 per dollar during the speech, and government bond yields declined.
- Treasury forecasts GDP growth of 1.2% in 2025, with growth averaging 1.8% from 2026 to 2028.
- The budget deficit is projected at 4.7% of GDP in 2025/26, narrowing to 2.9% by 2028/29, with debt stabilising at 77.9% of GDP.
- Analysts welcomed the policy credibility signal but warned that weak growth and possible spending pressures could limit debt progress and rating improvements.