S&P forecasts South Africa’s economy to shrink 4.5% in 2020
(005875.811-:E-000062.43:N-AC:R-SU:C-30:V)
S&P Global Ratings on Friday said it projects South Africa‘s economy to shrink by 4.5% this year as a result of the Covid-19 pandemic that has impacted production and consumption.
In April, S&P downgraded South Africa‘s credit rating further into non-investment-grade territory, saying Covid-19-related pressures would have significant adverse implications for the country’s already ailing economy and for tax revenues.
It lowered its long-term foreign-currency rating on South Africa to “BB-minus” from “BB” and its long-term local-currency rating to “BB” from “BB-plus,” with a stable outlook.
“Covid-19 will weigh heavily on GDP growth given the strict domestic lockdown that has shut down much of the economy, the markedly weaker external demand outlook, and tighter credit conditions,” S&P said. “As a result, we now project the economy to shrink by 4.5% this year.”
The ratings agency projects growth of 3.5% for 2021.
South Africa‘s lockdown has entered its ninth week, leaving many businesses and individuals struggling without income in the recession-hit economy.
S&P said the weaker macroeconomic environment would also weigh heavily on fiscal revenues, projecting that the fiscal deficit would widen to 13.3% of gross domestic product in 2020 –the widest in the country’s democratic history.
S&P estimates net debt levels would rise to over 75% of GDP by the end of 2020.
“Our anticipation of an only tepid economic recovery means that public financing needs will likely remain elevated throughout the forecast period,” S&P said. “As a result, the net debt-to-GDP ratio is unlikely to stabilize within this timeframe, rising to 85% by 2023, raising questions around debt sustainability.”
Source: https://www.moneyweb.co.za/news-fast-news/sp-forecasts-south-africas-economy-to-shrink-4-5-in-2020/
S.Africa: Black man has sex with his 3yo Granddaughter
The Black guy said that this was cheaper than paying a prostitute! WTF? Read it for yourself!
Video: What Hitler tried to teach Germans and ALL Whites
White peoples minds have been so rotted and misled on extremely important questions that I think most whites, and even many National Socialists (NAZIS) dont comprehend some of the lessons Hitler was trying to teach the Germans.
Video: The Greatest Jewish Lie told about Spanish Christians that EVERYBODY BELIEVES!
Most people think they know what the Spanish Inquisition was about, but theyre all wrong. They believe an enormous lie. As usual, what is left out is the role of the Jews.