BUSA trimmed its growth forecast for 2012 to 2.7% from 3%, with the economy expected to create about 200 000 jobs per annum in the formal sector.  This was not enough to meet the country’s socio-economic challenges, with South Africa needing to generate better economic performance in the coming years.

This comes as South Africa’s economy and the global economy have felt the impact of the Eurozone sovereign debt crisis.

BUSA also highlighted that the country’s competitiveness has declined due to issues around the ease of doing business. The country also needs to boost small and medium enterprises in order to boost job creation.

Parsons said that tax shocks should be avoided in the budget to be tabled in Parliament.

“We don’t think it’s time to increase taxes,” he said, adding that business also wanted reaffirmation of government’s commitment to predictability and certainty in policy, especially through programmes like the New Growth Path and the National Development Plan.

These were good programmes but Parsons said the country should work on implementation.

“South Africa needs to make 2012 a game-changing year for implementation.”

According to BUSA, the country needs to focus on structural factors to promote growth and employment and to strengthen investor confidence.

Business also expressed concern at the rise of administered prices.

“Business supports the need for better infrastructure [but] the bunching up and cumulative effect of excessive rises in administered prices is currently having a negative impact on our economic performance.