Moody’s expects SA confidence to rise after elections
Despite slow growth and an erosion in fiscal strength, SA’s credit profile will remain in line with countries one notch above junk status, it says
SA is expected to see surge in confidence following the elections in May, as the current administration under President Cyril Ramaphosa is continuing to gradually move forward with the implementation of its reform agenda, Moody’s Investors Service said. “We expect that the government's policies and the institutions will remain focused on addressing this trend but any reversal will be gradual at best given that social, economic and fiscal policy objectives will remain difficult to reconcile,” Moody’s senior credit officer Lucie Villa said in a report on Tuesday. Despite slow growth and an erosion in fiscal strength, SA’s credit profile will remain in line with countries one notch above junk status, she said. Moody’s expects growth to accelerate to 1.3% in 2019, and 1.5% in 2020. This is in line with the Reserve Bank’s forecast for 2019 and slightly below the Treasury forecast of 1.5%. Importantly, the report does not constitute as a ratings action. SA had a reprieve at the end of Ma...
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