The announcement by Moody's ratings agency to keep South Africa's credit ratings unchanged signifies a green light for the future.
The economic outlook was adjusted from stable to negative in December 2015 and later placed on review.
702's John Robbie spoke to senior economist at Nedbank, Isaac Matshego, regarding the issue.
Listen to the interview below:
I must just make it clear that the outlook from stable to negative actually happened on the 15th of December. This was just confirmation of the negative outlook.— Isaac Matshego, Nedbank senior economist
It's a bit of a loaded gun because the statement says that South Africa has a lot to do to move out of its current difficulties.— Isaac Matshego, Nedbank senior economist
What we should be proud of is the close cooperation between government, business and labour... There's been a lot of talks between the three to avoid junk status and to ensure we move the economy to a higher growth trajectory.— Isaac Matshego, Nedbank senior economist
The other ratings agencies have said what supports South Africa's economy is the strong governance framework. They talk about the courts, the economic management, the independence of National Treasury and even SARS (South African Revenue Services).— Isaac Matshego, Nedbank senior economist
The money that is not being invested is believed to be sitting in sitting idly in bank accounts. Business confidence is quite low at the moment.— Isaac Matshego, Nedbank senior economist
We need to ensure that this economy moves to a higher growth trajectory, we need to create jobs, we need to increase this economy's capacity to create jobs.— Isaac Matshego, Nedbank senior economist