Recession heightens risk of downgrade

South Africa is officially in a recession, Statistics South Africa said on Tuesday, increasing the risk of another credit rating downgrade.

Adding to the risk of another downgrade are above-inflation public sector wage increases, National Health Insurance and the economic stimulus package announced by President Cyril Ramaphosa.

The Money Show’s Bruce Whitfield interviewed Citadel Chief Economist Maarten Ackerman.

Listen to the interview in the audio below (and scroll down for quotes from it).

If you get higher economic growth everything else basically falls into place.

Maarten Ackerman, Citadel

Growth is a major warning light for rating agencies.

Maarten Ackerman, Citadel

We should actually be downgraded. However, we’ve seen very positive changes… that will result in better numbers down the line… We’re moving in the right direction but the results will only be seen months or years from now.

Maarten Ackerman, Citadel

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
'If you grow up with nothing, you want to look rich too soon'

'If you grow up with nothing, you want to look rich too soon'

Bruce Whitfield interviews Joe Public’s Pepe Marais about his attitude to money (hopes and fears, successes and failures, etc.).

3 best JSE shares to buy, right now (according to Small Talk Daily)

3 best JSE shares to buy, right now (according to Small Talk Daily)

Analyst Anthony Clark shares his stock picks of the week on Bruce Whitfield’s The Money Show.

'Getting people out of their homes and into a restaurant is challenging'

'Getting people out of their homes and into a restaurant is challenging'

Spur Corporation says it has experienced some pressure as customer spend is limited due to a slowing economy.

Small business owner, nobody will save you!

Small business owner, nobody will save you!

There are no shortcuts. Beware of "White Knights and Silver Bullets", warns Aurik Business Accelerator founder Pavlo Phitidis.

10 unexpected things that most truly rich people have in common

10 unexpected things that most truly rich people have in common

Personal finance expert Warren Ingram on the money values that those "worth" R40 million or more almost invariably have in common.

Jeremy Mansfield gets real about his money and beliefs about it

Jeremy Mansfield gets real about his money and beliefs about it

Bruce Whitfield interviews Jeremy Mansfield about his attitude to money (hopes and fears, successes and failures, etc.).

Popular articles
[VIDEO] Driver goes to extreme lengths to avoid a ticket, takes cop for a ride

[VIDEO] Driver goes to extreme lengths to avoid a ticket, takes cop for a ride

Yusuf Abramjee shared this 'video as received' on Twitter and it is going viral.

10 unexpected things that most truly rich people have in common

10 unexpected things that most truly rich people have in common

Personal finance expert Warren Ingram on the money values that those "worth" R40 million or more almost invariably have in common.

Small business owner, nobody will save you!

Small business owner, nobody will save you!

There are no shortcuts. Beware of "White Knights and Silver Bullets", warns Aurik Business Accelerator founder Pavlo Phitidis.

Forensic investigator pokes holes in Watson death probe

Forensic investigator pokes holes in Watson death probe

The recent findings of a private pathologist ruled out suicide as the cause of death of the former Bosasa boss.

Solidarity: private Afrikaans-medium college will be based on language, not race

Solidarity: private Afrikaans-medium college will be based on language, not race

Solidarity's Connie Mulder clarifies the intent behind their Afrikaans-medium college and says it's time for SA to get over race.

'My child went to an Afrikaans school'  Panyaza Lesufi says not 'anti-Afrikaans'

'My child went to an Afrikaans school' Panyaza Lesufi says not 'anti-Afrikaans'

Lesufi has been responding to the building of a new Afrikaans university in Pretoria by trade union Solidarity.

Panyaza Lesufi takes a swipe at private Afrikaans university under construction

Panyaza Lesufi takes a swipe at private Afrikaans university under construction

Gauteng Education MEC says there is no room in a non-racial South Africa for reminders of apartheid.

[WATCH] Man and woman assaulting a motorist goes viral, for the wrong reasons

[WATCH] Man and woman assaulting a motorist goes viral, for the wrong reasons

Khabazela shares tweets and Facebook posts that have gone viral.