CAPE TOWN – The National Treasury welcomed and noted the key risks identified and proposed policy recommendations by the International Monetary Fund (IMF) during a recent visit to the country last month.
The IMF visited South Africa from 27 - 31 May 2019 to discuss economic developments in the country. IMF staff met with government, the SA Reserve Bank, state-owned enterprises (SOEs), among others.
In a statement issued after the visit, the IMF in its main findings said South Africa’s growth outlook was dependent on the pace of implementation of structural reforms such as strengthening governance, encouraging competition, increasing labour market flexibility and reducing the cost of doing business.
“South Africa’s fiscal deficit is set to worsen primarily due to South Africa’s growth outlook, which will put additional pressure on debt levels. A major risk to South Africa’s growth is the weak finances and operations of SOEs, especially Eskom,” the statement read.
The IMF also found that inflation has remained at or below the midpoint of the official target range and financial stability has been maintained.