Finance Minister Enoch Godongwana has been suggested to be considering tapping into government’s reserves to close the gap between revenue shortfalls and growing State expenditure after he stated that it would run out of money before April.
The Minister of Finance is set to deliver his midterm budget on Wednesday on the back of some jitters over austerity measures.
The growth in the country’s GDP marks the economy’s second consecutive gain.
The ratings agency affirmed the country's long-term foreign and local currency debt ratings at BB-, noting that its credit rating was hindered by low real GDP growth.
The Ramaphosa administration is, once again, under heavy scrutiny from the sector, losing his appeal as South Africa's numerous political and economic woes continue to throttle its already frail image.
Ray White speaks to Dr Azar Jammine, the director and chief economist at Ecomometrix, on what the expected fuel price increase means for the South African economy.
Economists are growing increasingly concerned about South Africa’s economy because the country’s three major macroeconomic problems – lacklustre economic growth, growing inflation and very high unemployment – have been exacerbated by a series of major disruptions.
Policies often neglect the role of space and geography but growing evidence shows the importance of place and location for productivity, growth and development.
The country has approached the International Monetary Fund (IMF), the World Bank, and African Development Bank to source funding that will contribute to its R500 billion rescue package.
At 1500 GMT, the rand was 0.1% firmer at 14.0750 per dollar, backtracking slightly after reaching a session-strongest 14.0375 before bids stalled just shy of the 14.00 technical resistance mark seen by traders as key to moves in either direction.
Dr Jack
Government bonds also gained, with the yield on the benchmark 2026 bond falling 0.5 basis points to 8.385%.
I am sure many South Africans who are increasingly having to make do with less would probably wish that the most pressing matter in the minds of those in charge of government was the economy.
At 0640 GMT, the rand was 0.39% weaker at 13.6600 per dollar, its weakest since 29 January, compared with an overnight close of 13.6250 in New York.
S&P added in its report that South Africa’s external metrics were solid and that its monetary flexibility was a credit strength.
At 0640 GMT the rand was 0.6% weaker at R12.6625 per dollar compared to a close of R12.5875 overnight in New York.
At 1501 GMT, the rand was R12.7100 per dollar, 0.45% weaker than its close of on Tuesday. The currency had fallen to a session low of R12.7175/dollar.
With the United States meeting to decide on interest rates, a number of emerging market currencies have weakened against the greenback.
