South Africa’s Outlook Upgraded to ‘Stable’ by Moody’s

Moody’s Corporation

Moody’s has altered South Africa’s outlook from “negative” to “stable,” noting the government’s capacity to control its debt burden over the medium term as a rationale for the shift.

Even before the COVID-19 outbreak, South Africa’s government finances were in bad shape, and they took a further hit in 2020 when government revenues were impacted by an economic slowdown.

Since then, the fiscal position has improved due to better commodity export prices in South Africa.

“South Africa’s budgetary situation has noticeably recovered from the outbreak, thanks to the government’s fiscal austerity measures and beneficial external developments,” the ratings agency said in a statement.

Your Friends Also Read:  Diamond auction to hold in Angola

“As a result, the government’s debt-to-GDP ratio is now forecast to stabilize around 80% over the medium term,” says the report.

The agency said it is maintaining South Africa’s ‘Ba2’ rating, citing the country’s stable financial system as a rationale, as well as the country’s low risk and huge pool of domestic investors for government borrowing.

South Africa recently held an investment summit. This certainly attracted more foreign direct investments into the nation. A reality that shows many investors still have confidence in the country despite the backlash from last year’s riot in Durban.


All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.
Your Friends Also Read:  IATF 2021 a Chance to Break Borders Hindering Trade – Obasanjo

Contact: digital@newscentral.ng

Total
0
Shares

Leave a Reply

Previous Article
Bandits Storm Nigerian Community, Kill Commissioner’s Son (News Central TV)

Bandits Storm Nigerian Community, Kill Commissioner’s Son

Next Article

Suspected Militants Kill 21 Civilians in Eastern Congo

Related Posts
Powered by Live Score & Live Score App