Research Briefing | May 31, 2021

South Africa: Public sector wage bill set to increase further

The South African government has been struggling to rein in the public sector wage bill in the past. This seems to be the case again this year as National Treasury already extended an offer that will exceed its own budgeted figure for FY 2021/22. We examine what impact this offer will have on the fiscus.

Copy of Ipad Frame (26)What you will learn about:

  • Wage bill increases in the past have exceeded inflation comfortably
  • Labour unions came out swinging with double-digit demands
  • Fiscal deficit to widen with current offer on the table
Back to Resource Hub

Related Services

Seoul, South Korea

Post

BoK’s monetary policy to tighten even as hiking cycle ends

Even without rate hikes, central banks' monetary policies can effectively tighten if the nominal neutral rate falls below the policy rate. We expect this will be the case for the Bank of Korea this year, as the gap between the policy rate and the nominal neutral rate widens.

Find Out More

Post

China: Emerging green shoots in Spring, but not out of the woods

We now incorporate a faster recovery from the post-Covid exit wave and raise our 2023 full-year GDP growth forecast to 4.5% (from 4.2% previously).

Find Out More