South Africa's Finance Minister Enoch Godongwana announced on the 21st in Cape Town, the legislative capital of South Africa, that the economic growth forecast for 2026 will be lowered to 1.2% while temporarily cutting fuel taxes to ease the pressure brought about by rising international oil prices. When issuing a mid-term budget policy statement in parliament, Godong Guana said that if the Middle East conflict continues, combined with the El Niño phenomenon and its potential impact on production, South Africa's economic growth may be further pressured. South Africa's economic growth forecast for 2026 was lowered to 1.2% from 1.6% forecast in February this year; economic growth is expected to rise back to 1.6% in 2027 and reach around 2% in 2029. Godong Guana said that in order to ease the pressure on people's lives and corporate production costs, the South African government will temporarily reduce taxes on diesel and gasoline in stages from November 4 to January 5, 2027. From November 4 to December 1, the tax on diesel fuel was reduced by 3 rand per litre, and the gasoline tax was reduced by 1.5 rand per litre; thereafter, the tax reduction will gradually be reduced and will continue until January 5, 2027. He also said that despite weakening economic growth prospects, South Africa's public finance situation has improved. The South African Government will continue to push forward structural reforms, enhance the country's governance capacity, and increase investment in infrastructure conducive to economic growth to promote faster and more inclusive economic growth.

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