Moody’s cuts SA GDP forecast; sees economy shrinking 2.5% in 2020
The ratings agency is less pessimistic than the Reserve Bank, which expects GDP to contract more than 6%
Moody’s Investors Service has cut SA’s growth outlook for 2020, saying the economy will contract 2.5% this year as government steps to contain the effect of the Covid-19 pandemic will prove to be insufficient.
“The size of the support is very modest for now and will have limited effect in mitigating the impact of the crisis,” said the ratings agency. While SA may announce additional measures, the country has “limited capacity to stimulate the economy given the already strained fiscal situation”...