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South African finances ‘dangerously overstretched,’ Mboweni says

Country’s future economic prospects threatened.
Image: Bloomberg

The pandemic has left government finances in South Africa “dangerously overstretched” and heightened debt threatens the country’s future economic prospects, Finance Minister Tito Mboweni wrote in an opinion piece for Johannesburg’s City Press.

The last quarter’s sharp drop in economic activity is flowing through to tax revenues and an expected budget shortfall of more than R300 billion rand  will mean more government borrowing, Mboweni said.

South African’s economy shrank an annualised 51% in the three months though June from the prior quarter as household spending, capital outlays and exports all dropped.

Mboweni said the severity of the slump underscores the need for reforms that have been talked about for years but not well executed.

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Mr. Mboweni’s handlers are pushing an agenda where only certain sections of the population and economy is supported.

Like only certain jobs need saving?

At a time like this it is a very “clever” strategy to have. You would have thought ALL JOBS need saving.

Guess “the struggle” will continue.

Again lots of talk but no action by the ANC.

History books will clearly state that the ANC and the father of corruption (Jacob Zuma) are the two main reasons for the fall of SA into the abyss…

“South African’s economy shrank an annualised 51% in the three months though June from the prior quarter…” I thought the GDP shrank by that much. Correct terminology is still important.

End of comments.

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