Goldman Sachs is predicting a significant decline in South African inflation, forecasting an average of 3.3% for next year, contrasting with the central bank's estimate of 4%. Economist Andrew Matheny noted that inflation is expected to stabilize around 4% thereafter, diverging from the median 4.2% estimate from 30 economists surveyed.
Goldman Sachs is more optimistic about South Africa's fiscal outlook than Finance Minister Enoch Godongwana, who recently projected a larger revenue shortfall. Despite this, Goldman believes the country can stabilize its debt and reduce it below 70% of GDP by the decade's end.
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