Ratings agency Moody’s cut its forecast for South Africa’s economy to a 6.5% contraction in 2020, and said the country’s 500 billion rand ($26.29 billion) rescue package will weaken its public finances and constrain government’s ability to provide support to state-owned firms.
Moody’s cut its GDP forecast from a 2.5% contraction it predicted last Tuesday, saying in a research report on Friday economic growth will recover by 4.5% in 2021.
On Tuesday President Cyril Ramaphosa announced the package, equivalent to 10% of the GDP of Africa’s most industrialised nation, to try to cushion the economic blow of the coronavirus pandemic.
More Stories
EU Invites Ukraine’s Zelenskyy To Brussels Summit
Powerful Earthquake Kills More Than 5,000 In Turkey, Syria
Petro SA, Eskom Working On Cost Of Diesel Solution
Ramaphosa Asks Mabuza To Stay On, For now
Three SA Tourism Board Members Resign Amid Controversial R1bn Hotspur Deal
China Balloon Over U.S. Deflates Hopes For Diplomatic Thaw
Zelenskyy Meets with European Leaders
Eskom Needs More Than Money To Solve Its Problems – Analyst
SA Tourism R1bn Sponsorship Unjustified – Ramaphosa
Zuma Decries SCA Parole Ruling
Parliament Processing Key Recommendations Of State Capture Report
African Nations Commit To Ending AIDS In Children By 2030