Johan Fourie | What SA can learn from Jamaica's debt decline

Jamaica cut its debt from 144% of GDP in 2012 to 72% in 2023 despite averaging annual real growth of only 0.75% over the period. It did so despite a Covid-19 pandemic that disrupted tourism and mandated exceptional increases in public spending, says Johan Fourie.  

"Debt-service costs," said Minister Enoch Godongwana during his 2024 Budget Speech, "will absorb more than 20% of revenue."

To put this into perspective, spending on debt-service costs is greater than the respective budgets for social protection, health, or peace and security. We're paying interest through our noses.