South Africa Debt-to-GDP Could Reach 95% by 2024

South Africa’s public debt could rise as high as 95% of gross domestic product by 2024 if the government doesn’t restructure the state-run utility Eskom and implement a workable growth plan, the Institute of International Finance said in report, Reuters reported. The report, released late on Wednesday, echoes a warning on Tuesday by the central bank about ballooning government debt, which has doubled from less than 30% of GDP before the 2008 global financial crisis to nearly 60%. The 95% estimate is the worst of four outlooks the IIF report laid out. But even its baseline case shows debt rising to 70 percent of GDP, according to the IIF, a trade group of financial institutions that tracks market conditions worldwide. “South Africa’s debt sustainability is increasingly in question,” the IIF said in its report. Read more