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National Budget 2024: Finance Minister Warns of Economic Slowdown to 3.5% Amidst Impending El Niño Impact

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The Finance Ministry anticipates a robust expansion in the country’s economy, foreseeing a growth rate of 5.5% for the current year, a slight upward adjustment from the initial projection of 5.3% made in August.
Addressing parliamentarians on Thursday Finance minister Mthuli Ncube said this positive revision stems primarily from exceptional performance in vital agricultural sectors such as tobacco, wheat, and cotton, surpassing earlier expectations and contributing significantly to economic advancement.
He however said looking ahead to the following year, the Ministry foresees a slowdown in economic growth to 3.5% because of the impeding El Niño weather phenomenon, predicted to affect the upcoming summer cropping season, leading to potential declines in agricultural output.
He said additionally, declining global mineral commodity prices, indicative of a broader global economic slowdown, are anticipated to contribute to the projected deceleration in the economy.

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