SA economy: grow by 4% or face a debt trap

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The budget deficit has deteriorated so much that in the 2020/21 financial year, after the outbreak of the Covid-19 pandemic, it stood at 14% of GDP. Picture: iStock/Gallo Images
The budget deficit has deteriorated so much that in the 2020/21 financial year, after the outbreak of the Covid-19 pandemic, it stood at 14% of GDP. Picture: iStock/Gallo Images

BUSINESS

For the next four years, South Africa’s economy will have to grow by at least 3.5% a year to stabilise its current debt and have a budget surplus, say experts from asset management group Futuregrowth.

Before the global financial crisis in 2008, government had a firm grip on its financial affairs.

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