Kenya IMF loan, South Africa’s MTBPS, US election

South Africa’s Medium-Term Budget Policy Statement (MTBPS) unveiled this week was positioned as a pro-growth budget, but the reality is that the government is sticking to a tight fiscal stance. Elsewhere, the IMF’s decision to disburse more funds to Kenya provides much needed breathing space. But the government will need to continue on the fiscal consolidation path. The good news is that, overall, sovereign debt risks are declining much across the region, making it better placed to weather a rise in US Treasury yields that could arise in Donald Trump wins next week’s US election.

All our analysis on the implications of the US election for emerging markets can be found on our dedicated webpage.