Credit ratings agencies, markets await mini budget as Godongwana walks austerity path

Markets and the credit rating agencies will be watching South Africa’s debt projections as Finance Minister Enoch Godongwana delivers his Medium-Term Budget Policy Statement (MTBPS) today.

Moody’s Investor Service and other rating agencies will be checking to see if South Africa is able to reduce its fiscal deficit and taking measures to cut expenditure.

However, South Africa is struggling on both fronts.

Annabel Bishop, the chief economist at Investec, said, “We now expect the gross loan debt estimate for 2023/24 to be raised to -72.8%/GDP (gross domestic product) and 2024/25’s figure will be revised to -73.5%/GDP, while 2025/26’s projection deteriorates to -74.0%/GDP and 2026/27 to -73.9/GDP.”

Full story at IOL

By Philippa Larkin