IMF sees South Africas budget gap at 5% of GDP in 2012, 4.6% in 2013.

By bne IntelliNews October 10, 2012
The International Monetary Fund (IMF) projects South Africas budget gap to widen to 5% of GDP this year from 4.6% last year, the funds October Fiscal Monitor showed. The fund expects the countrys fiscal deficit shrink to 4.7% of GDP next year. The cyclically adjusted budget deficit is seen at 4.4% of GDP in 2012 and 4% in 2013, compared to 4.2% last year. In South Africa, in response to the global slowdown, the 2012 budget slowed the pace of fiscal adjustment envisaged the previous year, the global lender said. The cyclically adjusted deficit is expected to narrow gradually by 1 percentage points to 3 percent of GDP by 2015. The IMF projected that South Africas general governments expenditure, which stood at 32.1% of GDP in 2011, would rise slightly to 32.3% of GDP this and next year. The budget revenue is seen falling to 27.3% of GDP this year from 27.5% of GDP in 2011, and then rebounding to 27.6% of GDP next year. The fund predicts South Africas gross debt to rise from 38.8% of GDP last year to 41.2% at end-2012 and to 43.3% in 2013. The countrys total financing needs are estimated at 6.4% of GDP for this year and 6.5% for 2013.

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