News 17:00

BULLETIN 21 May 5 pm

Good afternoon. I am……..

In this bulletin:

# Minister Enoch Godongwana slashes the economic growth forecast from 1.9- to 1.4-percent
# President Cyril Ramaphosa’s White House agenda includes a working lunch and bilateral talks
# And motorsport: Ferrari’s team boss says the qualifying performance needs to improve

# Minister of Finance Enoch Godongwana now estimates the economy to grow at 1.4-percent this year – lower than the 1.9 percent he projected in March. He presented his third budget in Cape Town today. Over the next two years, Godongwana projects real GDP growth to rise moderately, to 1.6-percent in 2026 and 1.8-percent in 2027. He says looking further ahead, the risks to the outlook remain elevated. These include the worsening global outlook, weaker-than-expected growth in the fourth quarter of 2024, the persistence of logistics constraints and higher borrowing costs.

Godongwana has also promised economic growth without austerity, despite South Africa’s deepening fiscal challenges. He says the government will increase spending by 5.4-percent over the next three years, while holding off on raising VAT or introducing major new taxes. Godongwana acknowledges rising debt-service costs, now projected at 1.3-trillion-rand over the medium term:

# All eyes are on Washington, DC, today as president Cyril Ramaphosa meets his US counterpart, Donald Trump, at the White House. The meeting is set to begin at 5.30 this afternoon and includes a working lunch and bilateral talks. Ramaphosa is accompanied by key ministers Ronald Lamola, Khumbudzo Ntshavheni, Parks Tau, and John Steenhuisen, alongside business heavyweights like Johann Rupert, Business Unity South Africa’s Adrian Gore, and Cosatu’s Zingiswa Losi. Well-known golfers Ernie Els and Retief Goosen will also be in attendance.

Meanwhile, AgriSA CEO Johann Kotzé emphasises the importance of balanced trade ties between South Africa and the United States to alleviate current tensions. Following a business delegation’s visit to Washington, Kotzé highlighted concerns over recent US-imposed 30-percent tariffs on exports, including citrus and macadamia nuts. He told Newzroom Afrika that maintaining reciprocal trade agreements are crucial for the agricultural sector and economic stability:

# Motorsport: Ferrari team boss Fred Vasseur says they need to improve their qualifying results heading into this weekend’s Monaco Grand Prix. So far this season, Charles Leclerc’s best qualifying result has been third on the grid and Lewis Hamilton’s fifth. In last weekend’s Emilia Romagna Grand Prix, both drivers were knocked out in qualifying two. Vasseur says what is clear is that over the last three or four races, they have had a much better race pace than in qualifying, which is frustrating.

# And the financial indicators: The dollar trades at 17-rand-92-cents and the euro at 20-rand-31-cents. One British pound costs 24-rand-10-cents and Bitcoin trades at 106-thousand-443-dollars. Gold sells at three-thousand-306-dollars-90-cents a fine ounce and Brent crude oil is quoted at 65-dollars-54-cents a barrel.

Stay tuned for more news………….