Rising income inequality a threat to growth in SA, warns Moody’s
The ratings agency points to dire consequences of the wealth gap for the economy and the social fabric
23 June 2019 - 17:31
Moody’s Investors Service, the last remaining credit ratings agency to hold SA at investment grade, has warned that rising income inequality could curtail growth, potentially compromising a country’s credit profiles.
In a report published last week, Moody’s said high inequality tends to be associated with higher levels of corruption and weaker government institutions — factors that can undermine overall institutional strength...
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