IMF says South Africa needs ambitious fiscal consolidation
The International Monetary Fund said on Wednesday that South Africa needed to pursue ambitious fiscal consolidation to restore the sustainability of its public finances.
"Durable expenditure-based consolidation of at least 3 percent of GDP over the next three years is required to place debt on a sustained downward path, while protecting vulnerable groups," the IMF said in a statement.
The Fund said South Africa's new government should build on a pre-existing reform agenda while increasing its ambition and accelerating implementation.
"The new government should use the opportunity of a new mandate to implement bold reforms to address long-standing challenges and achieve the economy's full potential," it said.
South Africa's African National Congress has formed a broad coalition with several parties including the market-friendly Democratic Alliance after losing its parliamentary majority for the first time in 30 years in a May election.
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