Two ratings agencies on Thursday commended the government for its commitment to fiscal consolidation but raised concern over SA’s low economic growth. In the medium-term budget policy statement on Wednesday, Finance Minister Pravin Gordhan cut the economic growth outlook for 2016 to 0.5% from 0.9% and for 2017 to 1.3% from 1.7%, and slightly revised budget deficit projections upwards. Poor economic performance remained the main impediment to debt stabilisation, but government measures to boost trend growth performance constituted fine-tuning rather than meaningful reform, Fitch Ratings senior director Jan Friederich said. Fiscal consolidation in the medium-term budget was mostly on track but would continue to be challenged by slow progress and uncertainty around structural reforms to support growth, Moody’s vice-president and senior analyst Zuzana Brixiova said. Various organisations keep highlighting the need for structural reforms in SA, not only to boost economic growth but to al...
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