Fitch gives SA a strong warning
The Fitch Group revised its outlook on the South African economy from stable to negative.
JOHANNESBURG - With no official end to the platinum strike, ratings agency The Fitch Group issued a strong warning to South Africa after revising its outlook on the economy from stable to negative.
Fitch said the ongoing mass action and constrained electricity supply were both factors in its revision.
It is also concerned that the sharp depreciation of the rand in the last two years is not leading to increased competitiveness and growth.
Renaissance Capital economist Thabi Leoka said this was not good news for the country.
"Fitch said our GDP growth is very weak and we're not improving."
Several economists predicted a possible downgrade either today or during the agencies' next announcement in December.
Earlier this week the World Bank downgraded its growth forecast for South Africa's economy while mining figures released yesterday were surprisingly strong.
Standard & Poor's is yet to issue its rating for South Africa.