South Africa

South Africa’s National Treasury plans to use 150 bln rand from the central bank’s contingency reserves for early debt repayment to manage borrowing requirements and keep debt below 80% of GDP. The budget deficit is estimated at 4.3% of GDP for FY24-25, down from 4.7% the previous year, relying on spending cuts and additional tax revenue of 15 bln rand. However, there’s a risk of missing new spending targets, with Bloomberg economists forecasting a budget deficit close to 5% of GDP in FY23-24 and around 4.5% in the following year.