Ratings agency Moody’s has cited a number of key factors that continue to weigh down the country’s growth.
It’s revised this year’s forecast to 0.7% and 0.9% for next year and said it had a number of concerns.
Moody’s is the only major agency to still have this country at investment grade.
It has noted indicators such as production and poor purchasing managers’ index data as indications that industrial activity remained weak.
The ratings agency also noted that business and consumer sentiment had declined over the past two years.
Moody’s, last September, had foreseen growth of 1.5%.
But it’s now attributed its revised figure to the detrimental impact of widespread power outages on manufacturing and mining activity.
Moody’s, therefore, said that South Africa’s economy remained stuck in low gear.
Out of the three main ratings agencies, Moody’s is the only one to have the country at investment grade and is set to pronounce on South Africa’s status next month.
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