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IMF Expects Godongwana to Maintain Budget Surplus Target of 1.5% of GDP

The IMF’s South Africa mission chief expects Finance Minister Enoch Godongwana to keep the primary budget surplus at 1.5% of GDP and to embed the necessary fiscal reforms in the 2026 budget. The Fund highlighted controlling the public‑sector wage bill, improving procurement transparency and tightening oversight of state‑owned enterprises as essential savings measures. It raised its near‑term growth outlook to about 1.4% for 2024 and 1.3% for 2025, citing a resilient economy, lower inflation and recent structural reforms. However, it warned that rising global protectionism and tighter financial conditions could undermine progress.