8 things feeding South Africa’s massive debt crisis, according to economists

maumau

Honorary Master
Joined
Aug 13, 2009
Messages
13,972
What does this mean:
"including persistently large external imbalances and the possibility of sizable non-resident portfolio outflows"

Are they talking about people leaving ZA and taking their funds with them? Or just investing offshore?
 

Neuk_

Expert Member
Joined
Jan 23, 2018
Messages
1,847
What I find interesting is that we are being warned about hitting 90% Debt/GDP while Japan is sitting at over 200% Debt/GDP.
 

JayM

Expert Member
Joined
Oct 30, 2005
Messages
2,158
What does this mean:
"including persistently large external imbalances and the possibility of sizable non-resident portfolio outflows"

Are they talking about people leaving ZA and taking their funds with them? Or just investing offshore?
Foreign investors pulling out their money.
 

Scooby_Doo

Executive Member
Joined
Sep 4, 2005
Messages
6,457
What I find interesting is that we are being warned about hitting 90% Debt/GDP while Japan is sitting at over 200% Debt/GDP.
Japan's bond rates are negative. People are paying Japan to lend Japan money. South African bonds are running between 8% and 9%.
 

Gaz{M}

Executive Member
Joined
Feb 9, 2005
Messages
5,105
Debt to GDP isn't the problem, like people have said, the finance terms are important that are attached to that debt.

USA is over $22 Trillion (105% Debt to GDP), but at such a low interest of 2.5%.

South Africa debt is at +-10% but our economy is growing at <1%. Can you see the problem now?
 
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