In its mid-year review of the 2025 budget, South Africa’s government projected an improved fiscal outlook, although economic growth is expected to slow slightly this year. The National Treasury now forecasts a slightly smaller consolidated budget deficit of 4.7% of the GDP, compared to May's estimate of 4.8% of GDP, thanks to higher revenue collections, largely from mining following the recent surge in gold prices. South Africa's debt-to-GDP ratio is seen stabilizing at 77.9% this fiscal year, higher than the 77.4% indicated in May. Meanwhile, growth projections for this year and next have been revised down to 1.2% and 1.5%, from 1.4% and 1.6%, respectively. Importantly, Finance Minister Enoch Godongwana confirmed a lowering of South Africa's inflation target to 3%, with a 1 percentage point tolerance band on either side, marking the first adjustment in 25 years. The minister backed the SARB’s long-term goal, saying a lower, tighter inflation target has more benefits than drawbacks.