Row with US that wrecked rand puts SA’s IMF-beating record at risk

PRINESHA NAIDOO

A diplomatic row between the US and South Africa that’s sent the rand to its weakest level on record against the dollar may quash Pretoria’s record of outperforming International Monetary Fund expectations for key budget metrics.

Years after fiscal buffers were eroded by an era of government graft and bailouts for dysfunctional state-owned companies, the National Treasury’s resolve to stabilise public finances led to significant improvements in state debt and budget deficits.

It even beat IMF estimates for the key metrics every year since 2020.

Staff of the Washington-based lender that visited South Africa and met local authorities in March are scheduled to present their findings to its executive board Monday.

While the IMF cut its gross domestic product forecast for Africa’s most-industrialised economy to 0.1% from 1.2% and predicted that the budget deficit would widen through the fiscal year ending March 2026 in the days after the