SA economy likely to contract 7% this year – S&P Global Ratings agency
SA’s economy will contract by more than initially projected, likely shrinking 6.9% in 2020 compared to an earlier forecast of a 4.5% contraction.
SA’s economy will contract by more than initially projected, likely shrinking 6.9% in 2020 compared to an earlier forecast of a 4.5% contraction.
Sixteen out of 22 economists expect S&P Global Ratings to change its outlook on SA’s credit rating, sending the country deeper into junk territory.
Bloated by debt, bled by corruption and battered by structurally declining sales, Eskom is facing what’s known in the industry as a ‘death spiral’.
The economy grew an annualized 3.1 percent in the fourth quarter from the previous three months compared with a revised 2.3 percent expansion in the prior quarter.
There is a “clear danger” that South Africa’s state-owned power utility Eskom Holdings could default on its debt, S&P Global Ratings said.
Downgrade despair set in when all three of the major global credit ratings agencies published their latest decisions for South Africa last week.
South Africa’s economy fell into a recession for the first time since 2009 after it contracted for a second straight quarter in the first three months of the year.
The World Bank has lowered its estimates for South Africa’s economic growth between 2017 and 2019, it revealed in a report.
BlackRock expects insurance companies could move more than $300 billion into debt exchange-traded funds over the next five years, thanks to a gate that’s been lifted in U.S. regulations.
Business leaders said trust between the government and the private sector was destroyed when President Jacob Zuma fired his finance minister Pravin Gordhan in March.