The structural budget balance summarises the fiscal position of the government, excluding the budgetary effects of the business cycle. This measure offers insights into the medium-term direction of fiscal policy. Since 2010, South Africa has had a bigger structural budget deficit than the median observed among emerging market economies in each year. The IMF expects that South Africa’s structural budget balance will deteriorate over the next 5 years, while budget balances are expected to improve in most emerging markets.
