Professor Waldo Krugel from North West University comments on government fiscal consolidation and economic resilience, expressing hope that improved conditions can be leveraged once the US-Iran ceasefire takes effect.
theatre standard poor's global ratings a has termed the country's sovereign rating b keeping at b the outlook positive even as other economies many face downgrades government has saying welcomed this it's a sign that fiscal discipline reforms are starting and to pay off also encouraged analysts are that the agency maintained a positive outlook in face of some economic challenges latest s&p's affirmation follows its november twenty twenty-five upgrade of south africa's rating the positive outlook also comes as twenty three other sovereign's their ratings have seen downgraded since the escalation of conflict in the middle east south africa only one of two g20 countries alongside italy who a positive hold outlook from s and p national treasury says it is encouraging can that the country lift growth and cut public debt faster despite the current geopolitical turbulence makwe makwe masilela of fund managers says this decision by the agency shows that fiscal discipline does pay off making sure that you are spending is within the framework making sure that you are spending has a multiplier effect also looking into implementing all the necessary economic structural reforms so that your economic cannot be on a sustainable path for growth and itself it will be able to have some bit of cushion whenever we get some short term term shocks are seeing as we currently what has been happening with the energy shocks that we are experiencing but yes we are on the right it path and shows that by just having discipline the right implementing all what needs to be done and especially things that we ourselves as a country promised that we will implement talking about here i'm structural reforms then sure we should be okay going forward s that the twenty n p knows twenty five twenty year six fiscal tax revenues outperformed budget targets posted and government a third consecutive year of re surpluses rising price on the back of better collection and tax tighter spending the agency expects fiscal consolidation to continue to twenty twenty twenty nine to thirty this is with government debt slowly declining as a share of g d p professor waldo krugel from north-west university means that says this the there's confidence process in the reform and he hopes this resilience taken advantage can be of as soon s iran as the u ceasefire kicks in i we can make something hope that of this resilience as soon as the us and iran prolonged kicks in ceasefire hopefully this write off or moves opens and hopefully the oil price comes relatively quickly down so people are always concerned worried about and the south african economy but between them moody's and s&p we now have some good and positive news s and p expects south africa's real gdp growth to to one rise slightly point two percent six in twenty twenty and one point seven percent twenty seven over twenty to twenty twenty nine to as reforms electricity and other sectors support growth sitho dikobo sabc news johannesburg