Rise in commodity prices a good sign for SA economy?

On Wednesday, ratings agency S&P Global warned the country that its sovereign credit rating hangs in the balance.

FILE: Credit rating agency Standard & Poor's. Picture: AFP

JOHANNESBURG - South Africa is not the only country at risk for a credit downgrade in 2017 but there's still hope that the economy will grow this year with the recent rise in commodity prices.

On Wednesday, ratings agency S&P Global warned the country that its sovereign credit rating hangs in the balance.

Last year SA managed to avoid a downgrade to junk status and it's hoped the economy can grow beyond one percent this year.

Financial advisor Warren Ingram says South Africa is not the only country at risk.

“The whole resources driven side of the emerging market world will be in a very similar boat you know we have years and years of a weak currency, very poor demand for our commodities so it’s been a long and arduous journey for us and many other emerging markets.”

(Edited by Neo Koza)