20°C / 22°C
  • Wed
  • 26°C
  • 16°C
  • Thu
  • 28°C
  • 16°C
  • Fri
  • 29°C
  • 16°C
  • Sat
  • 25°C
  • 17°C
  • Sun
  • 23°C
  • 13°C
  • Mon
  • 24°C
  • 11°C
  • Wed
  • 28°C
  • 17°C
  • Thu
  • 24°C
  • 18°C
  • Fri
  • 25°C
  • 17°C
  • Sat
  • 23°C
  • 17°C
  • Sun
  • 26°C
  • 16°C
  • Mon
  • 30°C
  • 15°C
  • Wed
  • 28°C
  • 17°C
  • Thu
  • 29°C
  • 18°C
  • Fri
  • 32°C
  • 19°C
  • Sat
  • 27°C
  • 19°C
  • Sun
  • 25°C
  • 16°C
  • Mon
  • 24°C
  • 14°C
  • Wed
  • 28°C
  • 17°C
  • Thu
  • 30°C
  • 18°C
  • Fri
  • 29°C
  • 18°C
  • Sat
  • 26°C
  • 18°C
  • Sun
  • 23°C
  • 14°C
  • Mon
  • 25°C
  • 12°C
  • Wed
  • 25°C
  • 22°C
  • Thu
  • 29°C
  • 22°C
  • Fri
  • 27°C
  • 21°C
  • Sat
  • 29°C
  • 21°C
  • Sun
  • 25°C
  • 19°C
  • Mon
  • 23°C
  • 18°C
  • Wed
  • 25°C
  • 17°C
  • Thu
  • 25°C
  • 18°C
  • Fri
  • 22°C
  • 17°C
  • Sat
  • 23°C
  • 17°C
  • Sun
  • 20°C
  • 16°C
  • Mon
  • 22°C
  • 13°C
  • Wed
  • 35°C
  • 20°C
  • Thu
  • 30°C
  • 16°C
  • Fri
  • 31°C
  • 14°C
  • Sat
  • 27°C
  • 16°C
  • Sun
  • 30°C
  • 16°C
  • Mon
  • 35°C
  • 16°C
  • Wed
  • 28°C
  • 18°C
  • Thu
  • 22°C
  • 17°C
  • Fri
  • 25°C
  • 16°C
  • Sat
  • 22°C
  • 16°C
  • Sun
  • 25°C
  • 16°C
  • Mon
  • 28°C
  • 16°C
  • Wed
  • 30°C
  • 19°C
  • Thu
  • 31°C
  • 20°C
  • Fri
  • 33°C
  • 19°C
  • Sat
  • 31°C
  • 20°C
  • Sun
  • 26°C
  • 18°C
  • Mon
  • 25°C
  • 15°C
  • Wed
  • 25°C
  • 17°C
  • Thu
  • 24°C
  • 16°C
  • Fri
  • 26°C
  • 14°C
  • Sat
  • 25°C
  • 16°C
  • Sun
  • 26°C
  • 14°C
  • Mon
  • 25°C
  • 12°C
  • Wed
  • 26°C
  • 18°C
  • Thu
  • 28°C
  • 19°C
  • Fri
  • 27°C
  • 19°C
  • Sat
  • 27°C
  • 20°C
  • Sun
  • 23°C
  • 16°C
  • Mon
  • 22°C
  • 14°C
  • Wed
  • 27°C
  • 17°C
  • Thu
  • 26°C
  • 16°C
  • Fri
  • 24°C
  • 14°C
  • Sat
  • 23°C
  • 16°C
  • Sun
  • 20°C
  • 13°C
  • Mon
  • 23°C
  • 12°C

Govt urged to act decisively on SA's grim economic outlook

On Friday, ratings agency Moody's kept the country one notch above investment grade but has changed the outlook from stable to negative.

FILE: Moody's headquarters in New York. Picture: AFP

JOHANNESBURG – South Africa's economic future looks grim according to leading economists and leaders from the business community, who say urgent intervention was needed by government.

On Friday, ratings agency Moody's kept the country one notch above investment grade but changed the outlook from stable to negative.

The announcement came on the back of Finance Minister Tito Mboweni's Medium-Term Budget Policy Statement last week.

On Friday, the ratings agency indicated obstacles posed by high unemployment, income inequality, social and political challenges were proving to be more severe than expected.

Business Leadership South Africa's Busisiwe Mavuso said it’s clear what government needed to do.

“Now a decision is going to have to be very clear from the government on whether we really need to continue owning 100% of these [state-owned entities], especially the ones that are the biggest drain on the fiscus.”

Political analyst Lumkile Mondi agrees: “We are hoping that the [African National Congress] and its alliance partners will come to an agreement about a very credible economic plan.

The negative outlook meant there was a window of 12 to 18 months in which a downgrade could be delivered but it could come sooner if Moody’s wasn't impressed by the fiscal picture presented by the Finance Minister in his budget in February.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus