IMF says South Africa at risk if economic reforms don’t materialise fast
The International Monetary Fund (IMF) warned on Monday that South Africa is at greater credit-rating risk if the government does not act fast to implement reforms.
The country faces a prolonged period of weak economic growth marked by rising unemployment and inequality, the Fund said.
“The FY20/21 budget to be presented in February should articulate measures to address fiscal and SOE challenges and stabilise government debt,” IMF said in statement at the conclusion of a 2-week, Article IV visit to the country.
“Failure to implement the needed adjustment in government and SOE (state-owned entities) spending and efficiency will worsen debt dynamics, erode financial stability, and further raise the country risk premium.”