South Africa | Public sector wage bill set to increase further
The public sector wage bill is one of South Africa’s largest line items on the expenditure side, accounting for roughly one-third of total expenditure. In an effort to reduce remuneration costs, the government has opted to “freeze” the wage bill over the next three years. However, unions were not happy and forced the government’s hands to revise its offer. What will the impact of this new offer be?
What you will learn:
- The public sector wage bill has increased rapidly over the past couple of decades
- Unions are swinging for the fence with insane demands
- Government will have to reprioritise spending or overspend
Related Services
Post
NBP puts hikes on hold despite rising inflation and FX woes in Poland
The National Bank of Poland (NBP) kept its policy rate unchanged at 6.75% yesterday, undershooting consensus and our expectation of a 25pbs move. The decision took place against the backdrop of another upward surprise in inflation, which picked up to 17.2% in September, as well as mounting pressure on the PLN, not least due to the hawkish shift of AE central banks.
Find Out More
Post
Local rates and FX: Asian local currency sovereigns – not long now
The pieces are almost in place for a high conviction OW on Asian local currency debt, but not quite. Indeed, we maintain a cautious view on all EM local currency sovereign bonds, including Asia, given the relentless concern over the dollar and domestic inflationary pressures.
Find Out More