South Africa Faces Deepening Debt Crisis and Deteriorating Growth Prospects

South Africa faces a worsening debt situation, with debt ballooning from $80 billion in 2006 to over $287 billion in 2022. The country is at risk of a sovereign debt default.
The government's wage bill, especially for civil servants, is unsustainably high and cuts are needed. But this faces resistance from unions.
South Africa's economic growth has deteriorated over the last 15 years, made worse by corruption under former president Jacob Zuma. COVID-19 also hit the economy hard.
The budget deficit is expected to be 5-6% of GDP in 2023, much higher than the 4% target. Revenue growth is not keeping pace with debt repayment costs.
Global economic growth is slowing, projected at just 3% in 2023-24 by the IMF. This makes it harder for South Africa to fix its fiscal problems.

South Africa faces a worsening debt situation, with debt ballooning from $80 billion in 2006 to over $287 billion in 2022. The country is at risk of a sovereign debt default.
The government's wage bill, especially for civil servants, is unsustainably high and cuts are needed. But this faces resistance from unions.
South Africa's economic growth has deteriorated over the last 15 years, made worse by corruption under former president Jacob Zuma. COVID-19 also hit the economy hard.
The budget deficit is expected to be 5-6% of GDP in 2023, much higher than the 4% target. Revenue growth is not keeping pace with debt repayment costs.
Global economic growth is slowing, projected at just 3% in 2023-24 by the IMF. This makes it harder for South Africa to fix its fiscal problems.