Investors forecast positive news ahead of South Africa’s mid-year budget review, thanks to stronger-than-expected revenue collection.
Economists anticipate tax income to surpass the government’s projection, Bloomberg reported, driven by strong commodity prices and a surge in mining profits. Last month, the head of the National Treasury told Reuters that Africa’s largest economy was on track to meet its debt-to-GDP target and that spending had slowed, in part due to political wrangling over the main budget earlier this year.
Skyrocketing debt and government spending have outpaced revenue growth in South Africa in recent years. The mid-picture forecast is a “chance to mark a turning point for the nation’s long-strained public finances,” Bloomberg noted.