South Africa's financial resilience built up by fiscal reforms; broader reforms must continue – BLSA

The resilience shown by the South African economy since re-escalation of the US-Israel and Iran war, with the rand holding up better than it has during past global shocks, is a direct result of a deliberate build-up of policy credibility, says business organisation Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso. This build-up includes a lower inflation target, a primary budget surplus that has been widening since 2023/24 after 15 years of deficits and a planned fiscal trajectory that will see government debt peak at 78.9% of GDP this year before falling towards 75% by the end of the decade, she points out in her latest weekly newsletter.

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