SA needs credible fiscal consolidation for confidence and growth
Reducing public-sector wage growth is the only policy option that can offset reduced revenues according to the Institute of International Finance
The SA government needs to achieve “credible” fiscal consolidation, notably by reducing public sector wages, if it wants to boost business and consumer confidence enough to improve growth in the coming years, the Institute for International Finance (IIF) — the global association for the financial industry — said in a report on Monday.
The institute, which is expecting SA’s economy to grow at just 0.3% in 2019, its lowest in a decade, said that reducing public-sector wages appears to be the “only policy measure that could offer a sufficient offset to revenue underperformance and help stabilise public debt”. ..
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