Moody's says the growth forecast of all G20 countries, which includes South Africa, was revised downwards due to external factors such as US-China trade tensions and the global economic slowdown.has lowered South Africa’s economic growth outlook to 0.7%, from 1% for the 2019-20 financial year.
Lead Sovereign analyst at Moody’s, Lucie Villa, says the growth forecast of all G20 countries, which includes South Africa, wasVilla was speaking at the Moody’s Sub-Saharan Africa Summit in Sandton, north of Johannesburg, on Tuesday. “Then we revised all of our forecasts on the 22nd of August for all G20 economies which South Africa is a part of. Based on other data that we received between June and August, we revised down to 0.7%.”
Moody’s is the only major rating agency that still has South Africa on a none -junk or investment-grade rating. A downgrade could mean large outflows of investor cash and send debt cost soaring.Various investment, market, and economic analysts are attending the event.