Mmegi

Growth now expected near zero, deficit set to widen

Frank talk: Kganetsano at the PAC on Monday
Frank talk: Kganetsano at the PAC on Monday

The Finance ministry now expects the economy to either experience zero growth or contract this year, whilst the forecast P22 billion deficit will widen, as the recovery from a two-year slowdown diamonds has grown uncertain due to US trade tariffs, BusinessWeek has learnt.

The latest forecast comes as Finance ministry technocrats prepare the country’s inaugural mid-term budget, which will provide a half-year revision of the estimates provided in the February budget.

In a week in which the country was shaken by more revelations of the dire hand-to-mouth state of public finances, Finance ministry officials announced that the local economy was facing the possibility of the first ever double recession since Independence in 1966.

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