SOUTH Africa’s 2021 budget did not focus enough on economic reforms, making a sustained rebound in its gross domestic product unlikely, S&P Global Ratings said on Tuesday.
“There’s been some new momentum on pushing structural reforms … but it’s still reasonably thin, and again the budget was more a sort of fiscal control exercise rather than a structural reform exercise,” said S&P analyst Ravi Bhatia, during a webinar.
“So there is no reason to really expect a big, sustained rebound in the growth trajectory going forward. So that is concerning.”
In November, S&P affirmed its long-term foreign-currency rating of BB-, or three notches below the investment grade. It kept the country’s local currency debt at BB, both with a stable outlook. Fitch and Moody’s also rank South Africa’s debt junk.
The response to Finance Minister Tito Mboweni’s budget, where he promised a steady stabilisation of the country’s yawning fiscal deficit
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
