Business Maverick: Why IMF assistance to SA is not a realistic expectation in the near term

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 11 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 8%
  • Publisher: 84%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Business Maverick: Why IMF assistance to SA is not a realistic expectation in the near term By Refilwe Rakale, Yunus January and Rhandzo Mukansi

The justifiable expansion in government spending that immediately followed the 2007/08 global financial crisis has been supplanted by a decade of loose fiscal policy and sub-par macroeconomic growth. Before accounting for the inevitable realisation of Eskom’s contingent liabilities to the fiscus, South Africa’s “lost decade” has resulted in the doubling of government debt – from 26% in the 2008/09 fiscal year to 57% at present.

However, the domestic economy is simply inadequately geared to sustainably grow in excess of 2.6% in the medium term, so we can largely discount this as a credible solution to achieving debt sustainability.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines