In a post-budget briefing in
Johannesburg on Thursday Finance Minister said “South Africa can’t avoid a
credit-rating downgrade with good fiscal numbers alone”.
He continued saying “There was
a time when ratings agencies would take their matrix and tick the boxes to say
‘fiscally you look sound”.
“He concluded by saying “In
the last six years the goalposts have shifted, and it now includes fiscal
stability, indebtedness, where growth is going to come from and the political
budget, Gordhan cushioned low-income earners by targeting tax increases at the
wealthy and cut spending plans as he sought to support an economy set to grow
at the slowest pace since the 2009 recession without increasing the debt burden”.
Africa is at risk of losing its investment-grade credit-rating status because
of slowing growth and rising debt”.
Labels: Finance Minister says SA is at risk of losing its investment-grade credit-rating status