Goldman Sachs positive on the outlook for SA’s finances
Economist Andrew Matheny can picture a scenario in which SA starts being upgraded
The government could start to stabilise its debt as early as this year and if it can hold the line on spending over the medium term, SA could be looking at a scenario where it is getting rating upgrades instead of downgrades, says Goldman Sachs.
“Fiscal policy has shifted dramatically under the current finance minister and his predecessor,” says Goldman Sachs economist Andrew Matheny, who points out that the government is now focused on reducing the deficit by cutting spending rather than by raising taxes, and on shifting the composition of spending towards public capex (investment spending) and away from current items such as wages...
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