Sequel to Long Walk to Freedom - Revision 3 - Chapter 9 Page 6

The macro-economic strategy followed since 1996 focused firmly on building foundations for sustainable long-term growth. This requires higher levels of savings (currently hovering around the 15,5% of GDP ratio) and investment. Government dis-saving has significantly reduced, and it will not be long before the general government sector will make a positive contribution to the national saving effort. The budget deficit has been lowered from 7,2% of GDP in 1992/3 to 4,6% in of GDP in 1996/7 and to 2% of GDP in 2000/01. Had the government not followed this course, our economy would not have performed so well. 20