Year ends on bad note with unflattering outlook - Simonis Storm

December 11, 2017, 7:54pm

Financial year 2017 is poised to end on a bad note with massive unemployment, a heavily indebted government, high interest rates and a failure to adhere to fiscal consolidation and a shrinking private sector.

According to Simonis Storm Securities economist, Indileni Nanghonga, debt to GDP is hovered around 43% to GDP at the end of October 2017 way above the 35% threshold.

“We ?believe that government will remain indebted for a prolonged period as it has expanded its borrowing targets on domestic and foreign borrowing as a % of GDP to 27.2% and 17.0%, respectively, compared to 22.8% and 14.0% previously forecasted,” says the analyst.