The political events of the past week are resoundingly positive for SA’s economic and credit-ratings outlook, but whether SA continues to stay one step ahead of a junk rating really depends on a resurgence in economic growth.The withdrawal of charges against finance minister Pravin Gordhan, a good medium-term budget and the release of the public protector’s report on state capture highlight SA’s commitment to fiscal consolidation, the strength of the country’s democratic institutions and the lively voice of civil society, says Old Mutual Investment Group chief economist, Rian le Roux.He feels SA might just avoid a downgrade to junk at S&P’s review on December 2.Deutsche Bank economist Danelee Masia is more optimistic. She thinks the markets have underestimated the extent of the positive shift that has occurred, saying: "The next 12 months are likely to bring economic recovery and an improving political backdrop."However, a "dark cloud" still hangs over SA given the economy’s poor pe...
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