Mounting public debt isn’t unique to SA, but the issue is fiscal credibility
The Treasury’s stabilisation plans appear to be on track, though the bond market isn't convinced
24 October 2024 - 05:00
As the National Treasury prepares for its medium-term budget policy statement next week, the IMF’s most recent Fiscal Monitor shows SA is hardly alone in its public debt woes, with global public debt projected to reach $100-trillion or 93% of GDP in 2024 — and to approach 100% by 2030.
The IMF also has a new “debt at risk” framework which suggests that in a severe adverse scenario, global public debt could rise to 115% of GDP by 2026, though this is driven largely by the world’s largest economies, particularly the US and China, rather than by emerging market and developing economies...
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