Credit rating agency S&P confident SA will rebound
S&P expects SA’s economy to rebound and public finances to stabilise as government pursues economic and social reforms
Credit rating agency S&P Global Ratings is confident SA’s economy will rebound and public finances will stabilise as the government pursues economic and social reforms. S&P is one of two agencies that rate the country’s creditworthiness at sub-investment grade. Following the recession and a weak growth outlook for 2018, S&P said in a report on Thursday it anticipates that the “implementation of reforms, including the recently announced fiscally neutral growth package, will boost investor confidence, investment, and growth”. The economy is expected to recover and average more than 2% between 2019 and 2021. Growth is expected to rise from a tepid 0.8% in 2018 to 1.8% in 2019. “According to our projections, from 2019 economic growth will pick up modestly, helping contain the rise in government debt,” the report reads. S&P commended the economic stimulus plan announced in September 2018 by President Cyril Ramaphosa in response to the recession. The plan aims to revitalise growth without...
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