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SA GDP plunge, revenue shortfall to delay debt stabilisation – Moody’s

SA GDP plunge, revenue shortfall to delay debt stabilisation – Moody’s

South Africa will struggle to bring down its soaring levels of public debt, set to reach 80% of gross domestic product this year, due to the impact of the record economic contraction on tax revenues, ratings firm Moody’s said on Thursday.

FILE: Moody’s headquarters in New York. Picture: AFP

JOHANNESBURG – South Africa will struggle to bring down its soaring levels of public debt, set to reach 80% of gross domestic product this year, due to the impact of the record economic contraction on tax revenues, ratings firm Moody’s said on Thursday.

“Although we had already factored such a large drop into our full-year growth forecasts, the downturn will nevertheless intensify the government’s fiscal woes, particularly its ability to generate revenue,” said the ratings firm in a statement.

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