SA's Debt Expected to Rise to 88.7% of GDP by 2030 as VAT Hike is Suspended to Ensure Government Stability
15:59 26.04.2025 (Updated: 16:24 26.04.2025)
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SA's Debt Expected to Rise to 88.7% of GDP by 2030 as VAT Hike is Suspended to Ensure Government Stability
The IMF downgraded its forecast from the current 79.6% of GDP ratio following Finance Minister Enoch Godongwana's recent decision to reverse a VAT increase.
The decision to maintain the VAT rate aims to prevent government instability, and additional revenue proposals will be considered to offset adjustments and boost future budgets, according to the Ministry of Finance.
The IMF also lowered South Africa's economic growth forecast for 2025 from 1.5% to 1%.
Meanwhile, Fitch Ratings affirmed South Africa's 'BB-' long-term debt rating with a stable outlook.
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