South Africa Keeps Fiscal Targets on Track Despite Iran War, Backed by 1.1% Primary Surplus
Updated
Updated · Reuters · Jun 2
South Africa Keeps Fiscal Targets on Track Despite Iran War, Backed by 1.1% Primary Surplus
3 articles · Updated · Reuters · Jun 2
South Africa said its fiscal path remains intact despite the Iran war, with Treasury arguing recent budget performance gives it room to absorb the shock.
A 1.1% of GDP primary surplus in the year ended March beat the 0.9% budget target, helping fund 17.2 billion rand in fuel-levy relief without widening the deficit.
Treasury also pointed to buffers already in place before the conflict: improving growth, a balanced current account, a firmer rand and lower bond yields.
Spending pressure from inflation is limited by a public-sector wage deal running through 2027/28, while debt is seen falling to 76.5% of GDP by 2028/29 after peaking in 2025/26.
State-owned companies are adding support rather than strain, with Eskom on course for a second straight full-year profit after more than a year without power cuts.