National Treasury said that last week’s rebasing of the country’s Gross Domestic Product (GDP) had improved key fiscal metrics, including lowering last year’s peak in the debt-to-GDP ratio.
The Treasury said last week that debt-to-GDP peaked at 74.6% in the 2025/26 fiscal year based on the statistics agency’s updated GDP estimates, down from the 78.4% given in last month’s mid-year budget review. Statistics South Africa’s rebasing and benchmark exercise showed the country’s economy was about 5% larger than previously reported. The Treasury said the 2026/27 main budget deficit was now seen at 3.5% of GDP, against 3.7% in the mid-term budget review. The primary surplus is forecast at 1.6% of GDP in 2026/27, rising to 2.8% in 2029/2030.
Treasury director-general Duncan Pieterse said although the forecast changes were a mechanical revision, they showed the government “continues to achieve its fiscal targets” and is seeing the benefits in lower borrowing costs. – Reuters
- National Treasury said that last week’s rebasing of the country’s Gross Domestic Product (GDP) had improved key fiscal metrics, including lowering last year’s peak in the debt-to-GDP ratio.
- The Treasury said last week that debt-to-GDP peaked at 74.6% in the 2025/26 fiscal year based on the statistics agency’s updated GDP estimates, down from the 78.4% given in last month’s mid-year budget review.
- Statistics South Africa’s rebasing and benchmark exercise showed the country’s economy was about 5% larger than previously reported.
- The Treasury said the 2026/27 main budget deficit was now seen at 3.5% of GDP, against 3.7% in the mid-term budget review.
- The primary surplus is forecast at 1.6% of GDP in 2026/27, rising to 2.8% in 2029/2030.
