SA has entered an unsustainable debt spiral and the only way out is through improved confidence and higher growth — two elements that are being held hostage to the deteriorating political climate. The fiscal noose the country has made for itself is tightening. Next month at the midterm budget review a projected revenue shortfall of about R44bn for the 2017 fiscal year is likely to be announced. Unless finance minister Malusi Gigaba responds by lowering the expenditure ceiling and announcing pro-growth reforms, SA likely faces further ratings downgrades early next year. This is the message contained in a hard-hitting report released last week by Nedbank Corporate & Investment Bank research analyst Reezwana Sumad. It was followed closely by an equally dispiriting research note from Moody’s ratings agency.WHAT IT MEANS:SA’s fiscal crisis is deepening, with Moody’s warning against ‘radical economic transformation’Its commentary was in response to the recent revelation by Stats SA that p...

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