All eyes on South Africa ahead of Moody's and S&P credit rating review

All eyes are on South Africa ahead of the much-anticipated decision on a credit rating from international rating agencies Moody's and Standard & Poor's.

The economy has been marred by stagnant growth exacerbated by growing unemployment, an increasing public service wage bill and other factors.

702's Stephen Grootes spoke to chief economist at Econometrix, Dr Azar Jammine, about what lies ahead for the economy.

Currently, South Africa is two notches ahead of reaching sub-investment status (popularly known as junk status).

It is on a knife-edge and my backing is more in favour that Moody's will downgrade us.

Dr Azar Jammine, Chief Economist at Econometrix

He emphasised the importance of good governence in state-owned enterprises and managing the fiscus as those would be factors that would contribute towards a review.

Even if they [Moody's] do downgrade us, we'll still be regarded as investment grade. But it would still carry an important message.

Dr Azar Jammine, Chief Economist at Econometrix

Recommended

by NEWSROOM AI
Read More
Major medical breakthrough: New gene pegged as cause of heart attacks in youth

Major medical breakthrough: New gene pegged as cause of heart attacks in youth

This is being called the biggest medical advancement in South African cardiology since Dr Chris Barnard's first heart transplant.

Parents urged to check tertiary institutions are legit before registering kids

Parents urged to check tertiary institutions are legit before registering kids

The Council on Higher Education says parents need to be wary of the increasing number of fly-by-night tertiary institutions.

SA business not backing down on its support for Gordhan

SA business not backing down on its support for Gordhan

MD of Goldman Sachs says the signing of the pledge shows unity and sends a strong message in support of economic institutions.

Not signing Fica Bill will jeopardise SA's credit rating

Not signing Fica Bill will jeopardise SA's credit rating

Casac recently called on President Jacob Zuma to urgently sign Fica into law or return it to the National Assembly.

Moody’s assures SA it won’t downgrade (if economic growth holds up)

Moody’s assures SA it won’t downgrade (if economic growth holds up)

The Money Show’s Bruce Whitfield interviews two senior economists who read between the lines.

It's D-Day for South Africa's possible credit rating downgrade

It's D-Day for South Africa's possible credit rating downgrade

All eyes are on the markets in SA as S & P is expected to make a decision on whether to downgrade the country's credit rating.

Popular articles
Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

The account costs R4.95 per month; you get 1GB of free data. Swipe 4 times a month; you get 0.5GB of free data and R50 airtime.

'You can easily get a 15% total return from a share like MultiChoice'

'You can easily get a 15% total return from a share like MultiChoice'

Is there an investment case for MultiChoice? Arabile Gumede interviews Jacques Plaut, a Portfolio Manager at Allan Gray.

Huawei users in SA told not to panic over Android ban

Huawei users in SA told not to panic over Android ban

Google is suspending its business relationship with Chinese smartphone manufacturer.

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

The Glamour Boys lost the Nedbank Cup final to underdogs TS Galaxy on Saturday.

'It is very clear that Ramaphosa is under attack from Magashule and others'

'It is very clear that Ramaphosa is under attack from Magashule and others'

News24 editor-in-chief Adriaan Basson says there is a definite fight back from the ANC secretary-general against the president.

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

A video of a young man kicking actor and former US governor Arnold Schwarzenegger in the back on Saturday in Joburg went viral.