Structural budget balance estimates SA vs EMEs

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.

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