Moody’s downgrade could trigger ‘Domino effect’, but unlikely – Azar Jammine
Leading credit ratings agency Moody’s is expected to release an updated review of South Africa’s credit rating today, 11th August.
Leading credit ratings agency Moody’s is expected to release an updated review of South Africa’s credit rating today, 11th August.
Azar Jammine explains in this superb analysis of the official GDP figures for the first quarter of 2017, bad politics finally caught up with the country and has now smashed the economy’s resilience.
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 cut its growth projection for sub-Saharan Africa this year because of weak expansion in the region’s three biggest economies.
Azar Jammine is the second economist to drop his GDP forecast as a direct result of the impact from SA president Jacob Zuma’s firing of his finance minister Pravin Gordhan.
In another excellent contribution, independent economist Azar Jammine applies his mind to the latest blow to SA’s economy – the departure of Treasury’s director-general Lungisa Fuzile.
SA’s downgrade after the nation’s finance minister was fired means three of the five BRICS nations now have junk credit assessments at S&P Global Ratings.
If Jacob Zuma’s audacious, externally initiated gamble of firing the incorruptible Pravin Gordhan and Mcebisi Jonas succeeds, then South Africa faces a very bleak future.
Is it an ABIL, or will it be a Lonmin? That is the question many who participated in the PPC rights issue will be asking.
RainFin believes that a new approach to lending is needed, which can keep the essential SME ecosystem alive during troubling times.