South Africa's Overall Balance (% of GDP): Net Lending/Borrowing Trends and Forecasts (2000-2029)

South Africa's fiscal balance has experienced significant fluctuations, reflecting both domestic economic challenges and external shocks. The early 2000s marked an improvement, with deficits narrowing from -1.38% in 2000 to a surplus of 1.22% in 2007. This was driven by strong economic growth, improved tax revenues, and sound fiscal management during a commodities boom.

However, the 2008 global financial crisis led to a sharp reversal, with the deficit widening to -4.67% in 2009. Persistent structural issues, including rising public debt, weak economic growth, and underperforming state-owned enterprises, have kept deficits elevated since then. The COVID-19 pandemic exacerbated these challenges, with the deficit peaking at -9.61% in 2020 due to emergency spending and reduced revenues.

Although recovery efforts have improved the fiscal position, forecasts indicate sustained deficits, stabilizing around -5.79% by 2029. Addressing long-term fiscal imbalances will require structural reforms to boost economic growth, enhance revenue collection, and curb inefficient expenditures.