S&P forecasts South Africa’s economy to shrink 4.5% in 2020

(000228.79-:E-000157.73:N-:R-SU:C-30:V)   


Jan‘s Advertisement
Photos: Adolf Hitler: One of the Good Guys 12 Things you were not told about Adolf Hitler
Here is an overview of 12 Things you were not told about Adolf Hitler and National-Socialist Germany.


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/



Jan‘s Advertisement
Video: How Rhodesia & South Africa killed 1 million+ Blacks after Portuguese Collapse
This is the story of something that the Rhodesians kicked off in desperation after the Portuguese had collapsed. Its effect lasted decades and huge numbers of Blacks died and it had massive effects on a Black nation. In this video I also discuss many deeper things including my discussions with President PW Botha.

%d bloggers like this:
Skip to toolbar