South Africa faces budget crunch as downgrade threat looms

South Africa’s finance minister Pravin Gordhan is expected to deliver his most difficult budget speech today.

The minister is faced with the tough task of trying to please the financial world and solve the country’s economic issues.

Economists predict Gordhan will have to hike some taxes, revise the GDP growth as well as push the cap on government spending.

South Africa expects narrower budget deficit as it cuts spending: Treasury https://t.co/mLkTtPJJaG https://t.co/nNyVdIfR2H #AfricaMeansBu…

— Afrinnovator (@Afrinnovator) February 24, 2016

Africa’s most developed economy faces a myriad of challenges such as the looming junk status downgrade, high unemployment rate and slow economic growth.

The International Monetary Fund and the World Bank predict growth in Africa’s most developed economy will slide to less than one percent in 2016.