SA’s economy likely to plunge 4% in 2020, says BNP Paribas
The Covid-19 outbreak is expected to push SA’s budget deficit to 9.1% in 2020/2021, which may prompt an approach to the IMF or World Bank
02 April 2020 - 09:50
BNP Paribas, one of the world’s largest banking groups with operations in over 70 countries, expects SA’s economy to slump 4% in 2020, which will result in a sharp rise in government borrowing requirements and may prompt an approach to the International Monetary Fund (IMF).
The National Treasury is likely to raise bond issuance between 35% to 40% in coming weeks to cover a revenue shortfall as the global economic environment deteriorates, and SA’s budget deficit is likely to reach a record high in the 2020/2021 fiscal year, said senior economist at BNP Paribas SA Jeffrey Schultz in a note...
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