Poor GDP outcomes will worsen SA’s fiscal woes, Moody’s says
The ratings agency says tax revenue losses will be more severe than the fall in economic activity
SA’s historic second-quarter GDP collapse, though not unexpected, will intensify the state’s fiscal woes, particularly its ability to generate revenue, ratings agency Moody’s Investors Service said on Thursday.
Though the lifting of lockdown restrictions will support a recovery in economic activity during the second half of the year, the agency warned that renewed load-shedding by power utility Eskom will weigh on growth in the second half. ..