This year South Africa was downgraded to junk status, and the Public Investment Corporation (PIC) warns that further downgrades are on the cards.
Isaac Matshego, economist at Nedbank says that since the initial downgrade in April this year, things have just gotten worse. This means we are likely to be downgraded again.
Looking at the growth numbers, we have confirmation that the economy has dipped into recession. We have had two consecutive quarters of negative growth.— Isaac Matshego, economist at Nedbank
One of the biggest contributing factors is the amount of political confusion in the country, Matshego says, adding this has really harmed business investments.
Just look at business confidence. It is in it lowest level in 20 years.— Isaac Matshego, economist at Nedbank
Listen to the full interview below:
This article first appeared on 702 : PIC warns of another ratings downgrade