Reserve Bank Governor Lesetja Kganyago has emphasised that despite global volatility and uncertainty South Africa’s macroeconomic prospects are looking healthier after years of underperformance, rising debt and high inflation.

Delivering a keynote address at the Mapungubwe Institute for Strategic Reflection Forum on Africa and Geopolitics Forum, Kganyago underscored the risk of a global policy crisis characterised by multiple crises including economic, environmental, geopolitical and social challenges.

“We expect inflation to slow significantly next year, and we have increased our policy rate to make sure we get back to 3%. We currently expect to get there around the end of next year. For fiscal policy, we finally seem to be recovering from the ‘outer year’ syndrome. Sufferers of this disease promise that things will get better at the end of the forecast period but with each forecast the promise shifts later. Now there is increasing conviction that South Africa’s debt has peaked already and the debt-to-GDP ratio will improve over the next few years.”

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