Relief in South Africa. This is the second rating agency in a month that decides not to degrade the sovereign rating of the country. Last month, Moody’s maintained its rating . This time, it is Standard and Poor’s keeps South Africa a notch above the high-risk status that would scare away investors.
Earlier this week, the Minister of Finance – appointed to the post six months ago to turn the economy – said he was confident. Pravin Gordhan for his ministry did everything in recent months to reassure investors.
Poor prospects
But the pressure is not lifted. A third rating agency, Fitch, must decide next week. If it also maintains its rating, it will give six months’ respite Pretoria.
But the outlook is poor . Growth should not exceed 0.6% this year and unemployment is over 26%. Finally, according to many economists, South Africa can not escape degradation by the end of the year.
No comments:
Post a Comment