Inside South Africa’s looming fiscal crunch
As economists squabble over whether the country’s finances are in crisis, the pace of debt accumulation has reached a gallop and could soon hit 80% of GDP
South Africa’s public finances are taking strain, and in the absence of a credible growth strategy concerns are growing about the country’s longer-term debt sustainability.
Some left-leaning economists at the Institute for Economic Justice (IEJ), a private think-tank in Gauteng, dismiss the idea that there is a crisis. They accuse the National Treasury, which is trying to slam on the spending brakes, of “stoking panic” so it can force through unpopular expenditure cuts. ..
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