Taken together, the Government's approach to development and growth builds a bridge between the present constrained environment and sustainable expansion within an increasingly competitive international context. It is Government's conviction that we have to mobilise all our energy in a new burst of economic activity. This will need to break current constraints and catapult the economy to the higher levels of growth, development and employment needed to provide a better life for all South Africans. We are confident that our social partners will join us in the combined efforts needed to achieve this goal. The trends established over the past two years suggest that the economy is on track for continued, if somewhat slower, growth in exports and investment.
Policies are in place to bring the fiscal deficit down steadily and to keep inflation in check.
Although this represents a considerable improvement on past performance, it is not a development path which meets the goals South Africans have set for themselves. The unemployment rate would then rise by some 5 percent to about 37 percent in 2000. Secondly, the scope for increased public spending on social services would be severely limited. The additional funding available would not cover 15 percent of current medium term departmental expansion plans. Thirdly, the balance of payments remains a structural barrier to accelerated growth.