South Africa is in danger of missing its 2017 growth target of 1.3 per cent, due to poor performance of major sectors of the economy that will likely restrain tax revenues, Finance Minister Malusi Gigaba said on Monday.
“Our current level of growth is simply insufficient and not enough… we cannot be complacent about the 2.5 per cent second quarter growth that got us out of technical recession,” Gigaba said in a speech at a tax conference in Johannesburg.
South Africa aims to collect 1.3 trillion rand (98 billion dollars) in taxes during the 2017/18 fiscal year that ends in March, versus the 1.14 trillion rand collected a year earlier.
Africa’s most industrialised economy emerged from a recession after a 2.5 per cent expansion in the three months to the end of June.
The economy had contracted by 0.6 per cent in the first quarter and by 0.3 per cent in the final quarter of 2016.