SA’s recovery from the coronavirus pandemic and the lockdown restrictions implemented to help curb its spread will be slow and difficult, with the state unlikely to meet the ambitious targets it has set itself to right its already weak finances.

This is the view of Absa’s SA macroeconomics team, which expects that the budget deficit will reach 16.6% of GDP as revenues crater due to shrinking economic growth and as the state struggles to deliver on the extensive cuts to spending — notably wages — promised in February’s national budget.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now