SA faces low growth and little room to rein in deficits, says Moody’s
The rating's agency underscores SA’s difficulty in implementing policy reforms that could boost growth, as 2020 gets off to a shaky start
Low growth and limited scope to reduce public spending will keep SA’s fiscal deficits elevated, Moody’s Investors Services said, highlighting SA’s inability to move on policy reforms to boost growth.
Moody’s stressed the challenges SA confronts in its 2020 outlook (https://www.moodys.com/research/Moodys-Increasing-external-risks-muted-growth-and-weak-public-finances--PBC_1209781) for sub-Saharan countries on Monday, as the country faces a difficult February budget. The government must rein in state spending and rising debt levels despite weaker tax revenues.