According to the MEC for Finance, Motlalepula Rosho, the province’s economy registered the worst performance and contracted by 7.9 percent in 2020/21. During the tabling of her Provincial Adjustment Budget for the 2021/22 financial year at the Provincial Legislature on Tuesday, the MEC said this reflected the deepening economic crises in the province. However, Rosho says according to a study, the provincial economy is set to recover with an anticipated growth of 6.3 percent in 2021.

The current economic climate remains difficult and the coronavirus outbreak has already brought considerable human suffering and major economic disruption. Output contractors in large economies like the US, China, and Europe are being felt around the world, reflecting the key and rising role that these centres are playing in global supply chains, travel, and commodity markets. Subsequent recurring outbreaks in other economies are having similar effects, albeit on a smaller scale,” she added.

She said the recovery will be aided by the current relaxation of lockdown measures and the opening of economic activities. She told the Members of the Legislature (MPL’s) that the province needs to reposition itself to effectively participate in the ever-evolving economy, thus the need to embrace change and remain agile in riding the wave of economic opportunities.

“The future of jobs lies in the economic competitive edge of the province within the global space. We remain cautiously optimistic that the economy will bounce back as we continue to roll out the vaccine with the hope of reaching the expected population immunity soon,” Rosho further added.

Rosho on Tuesday indicated that the provincial budget allocation increased from R46,240 billion to R48,788 billion, which translate to an increase of R2,548 billion.

OFM News