Kganyago says commodity boom won't last, warns the government against complacency
SA’s economy, which slumped 6.4% and lost more than 1-million jobs in the wake of the Covid-19 outbreak, has got a breather from a surge in commodity prices
SA’s commodity boom, which is giving rise to demand for more spending, will burst like others before and the government should resist temptation to use it as a reason to delay fiscal consolidation, Reserve Bank governor Lesetja Kganyago said.
“Don't adjust your spending thinking you are wealthier than you are,” Kganyago said on Friday during a virtual panel discussion that also involved Mexico’s former central bank governor Agustín Carstens and head of the US Federal Reserve Jay Powell. “The boom is not a permanent one.”..