South Africa’s unrest: the fallout for the public finances

South Africa’s unrest: the fallout for the public finances

The disruption to economic activity from the unrest and violence in South Africa, which now appears to be dissipating, will probably prove to be limited, but the impact on the public finances is likely to be more significant. In particular, there is a rising likelihood that the authorities scale back their fiscal consolidation plans, which would leave the public debt ratio on a worrying upwards trajectory.
Virag Forizs Emerging Markets Economist
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