Economists are falling over themselves to revise SA’s near-term fiscal outlook upwards as the commodity boom translates into a far stronger domestic economic recovery than many expected. The prospect of an imminent fiscal crisis is now firmly receding and, with it, the danger of further ratings downgrades.

Along with the commodity windfall — which has brought about R100bn of additional income into the economy — higher inflation, a firmer rand, a reduction in sovereign credit risk and the recent spurt of reform (on energy, SAA and the ports) are all contributing to SA’s fiscal turnaround...

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