Goldman Sachs Group Inc. holds a more positive view on South Africa's fiscal situation compared to Finance Minister Enoch Godongwana.

Despite the minister's recent update on the medium-term budget, which indicated a slightly wider deficit and a more cautious economic forecast, Goldman Sachs believes that the expected revenue shortfall will not be as severe as projected.

Economist Andrew Matheny from Goldman Sachs stated that South Africa is making credible progress towards fiscal consolidation. The country is expected to stabilize its debt levels and reduce them to below 70% of gross domestic product by the end of the decade, countering the more negative assessments presented by the finance minister.