Gauteng economy to retract by 6% in 2020
Gauteng's economy is expected to retract by 6% this year, according to the province’s Finance MEC Nomantu Nkomo-Ralehoko.
Nkomo-Ralehoko tabled a revised budget on Thursday which will allocate money for the province to deal with the Covid-19 pandemic.
Nkomo-Ralehoko’s adjusted 2020/2021 budget by R4bn increase from the R142.4bn announced in March to R146.4bn.
The provincial retraction is lower than the 7,2% slowdown expected for the national economy.
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"Current forecasts from the National Treasury suggest that the economy will contract by 7.2% cent in 2020, mainly as a result of the national lockdown. However, in 2021 a recovery to 2.6 per cent is expected,” Nkomo-Ralehoko said.
"Closer to home, in the first quarter, the provincial economy contracted by 1.3% after a contraction of 1.4% in the fourth quarter of 2019.
"Current forecasts suggest that the Gauteng economy will contract by 6% in 2020.”
She said despite the extensive reprioritisation of money the province’s 10-year plan remains in place.
"And the resources allocated to the actualisation of those comprehensive measures crucial to economic mitigation, job preservation and socioeconomic recovery in this period.”