Johannesburg - South Africa has the space to manage its budget deficit and attract enough inflows to fund its yawning current account shortfall, Finance Minister Pravin Gordhan said on Tuesday.
“Currently we have the space, if you like, to manage our fiscus in an effective way and attract what is required to balance out or to fund our current account deficit,” Gordhan told a mining meeting.
The 'twin deficits' on South Africa's budget and current account weigh on the rand and make Africa's largest economy more risky that its emerging market peers as global investors turn away from riskier assets in anticipation of a slowdown in US stimulus.
Gordhan also said emerging markets have the opportunity to adjust and manage their economies better to avoid being hit as hard by outside shock such as a pull-back in US stimulus. - Reuters