JOHANNESBURG (Reuters) โ The International Monetary Fund said on Wednesday that South Africa needed to pursue ambitious fiscal consolidation to restore the sustainability of its public finances.
โDurable expenditure-based consolidation of at least 3 percent of GDP over the next three years is required to place debt on a sustained downward path, while protecting vulnerable groups,โ the IMF said in a statement.
The Fund said South Africaโs new government should build on a pre-existing reform agenda while increasing its ambition and accelerating implementation.
โThe new government should use the opportunity of a new mandate to implement bold reforms to address long-standing challenges and achieve the economyโs full potential,โ it said.
South Africaโs African National Congress has formed a broad coalition with several parties including the market-friendly Democratic Alliance after losing its parliamentary majority for the first time in 30 years in a May election.
(Reporting by Bhargav Acharya; Editing by Alexander Winning)
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