S&P raises South Africa’s outlook to ‘positive’ on trade terms, fiscal discipline
(Reuters) – Rankings company S&P revised https://disclosure.spglobal.com/rankings/en/regulatory/article/-/view/kind/HTML/id/2842888 South Africa’s outlook to “constructive” on Friday, saying it displays beneficial phrases of commerce and a path towards contained fiscal expenditure for the nation.
S&P upgraded its outlook from “secure” and affirmed the “BB-/B” overseas forex in addition to “BB/B” native forex rankings on South Africa.
“Latest beneficial phrases of commerce in South Africa have improved the exterior and monetary trajectory, whereas the nation’s moderately giant internet exterior asset place, versatile forex and deep home capital markets present sturdy buffers in opposition to shifts in exterior financing,” S&P mentioned in its report.
S&P mentioned it expects South Africa’s fiscal deficit to stay elevated, however progressively slender to five% of GDP by fiscal 2025.
The financial progress of Africa’s most industrialised nation is anticipated to sluggish to 1.7% this yr, in keeping with the central financial institution’s forecast on Thursday, from a 4.9% growth final yr, because it recovers from a contraction within the wake of the COVID-19 pandemic.
(Reporting by Ahmed Farhatha in Bengaluru and Olivia Kumwenda-Mtambo in Johannesburg; Enhancing by Amy Caren Daniel)
