CLAIRE BISSEKER: With supportive global factors fading, SA’s vulnerabilities are exposed again
Commentators are beginning to agree that the country is fiscally unsustainable
11 July 2022 - 15:03
Three months ago it seemed the downbeat Sandton consensus had become too bearish on SA. There had been several positive developments, including a successful spectrum auction, the opening of bid window six for renewables, and moves by Transnet to allow private rail concessions. But the biggest improvements were on the fiscal side.
The combination of Stats SA’s statistical rebasing exercise and a R200bn revenue overrun in 2021/2022, thanks mainly to sky-high commodity prices, meant that instead of exiting the pandemic with an expected debt ratio of about 80% of GDP, it came in below 70%...
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