JOHANNESBURG - The International Monetary Fund on Monday kept South Africa’s economic growth forecast for 2018 unchanged at 1.5 percent but warned that the economy faced several headwinds, mainly the rapid rise in public debt and potential bailouts to state firms.
“The IMF’s concerns on fiscal policy relates to the rapid increase in public debt as a share of GDP, which has doubled over the last decade, depleting fiscal buffers and constraining fiscal policy space,” National Treasury said in a statement quoting the IMF’s article IV statement following a two week-long country visit by the lender’s officials.
“Risks related to potential SOE’s (state-owned enterprises) bailouts will further constrain fiscal policy.”
South Africa already owes more than 55% of it GDP to IMF.that why Ramaphosa is avoiding to borrow again instead raise the cost of leaving to pay up the debt and this freebies they providing.and majority of the citizens are beginning to understand that freebies are not free.
— sboniso shange (@sbonisoshange3) July 30, 2018
Bricks was a huge success President Xi of China assistance with bailout of Eskom and Transnet was a major success of for South Africa govt Western & America lending institutions like World Bank,IMF EU would have come up with stringent conditions for lawn, Bricks is the future.
— Enoch Mthembu (@EnochMthembu) July 29, 2018