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Assessing and promoting civil and minority rights in South Africa.

[Source: BusinessTech.]

As South Africa heads into a three-week lockdown that will shut down large parts of its already shrinking economy, a possible downgrade of its credit rating to “junk” on Friday could be the least of its problems.

Moody’s Investors Service is scheduled to make an announcement at the end of the week and while it could end up taking no action, 19 of 23 economists surveyed by Bloomberg expect a negative ratings move. According to 12 respondents, the country will be cut to junk, while seven expect it to be placed on ratings watch for a downgrade, two expect it to be affirmed at current levels and two expect no statement.

Pessimism has been growing since Moody’s in November cut the outlook on South African credit to negative and the February budget failed to show a debt-stabilization path.

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South Africa at a Glance
58 780 000 (mid 2019 estimate)
4.6% y/y in February 2020 (CPI) & +4.5 y/y in February 2020 (PPI)
-1.4% q/q (4th quarter of 2019)
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