Connect with us

Business

Moody’s scales down South Africa’s GDP growth projection as Covid-19 rages on

Published

on

Moody's explains why Nigeria's credit rating is exposed to shocks

Global ratings agency, Moody’s, has in its latest review of the 2020 economic outlook for South Africa slashed its growth forecast from 0.7% to 0.4%.

The agency in the new report saw South Africa’s crisis-held economy as one of several others that hold lower growth prospects in the nightmarish aftermath of the outbreak of the coronavirus.

Nigeria had last week toppled the rainbow nation as Africa’s largest economy, after the latter slumped into its second recession in successive years following the far-reaching effects of electricity blackouts on production and investor’s confidence with thousands losing their jobs.

Read also: Access Bank reports N97.5bn after-tax profit, declares N0.45 final dividend

In a move to salvage the Southern African economy from the corridor of uncertainty, President Cyril Ramaphosa during the weekend reportedly appointed Nigeria’s former Finance Minister, Ngozi Okonjo-Iweala as a member of its newly constituted Economic Advisory Council.

“The global spread of the coronavirus is resulting in simultaneous supply and demand shocks.

“We expect these shocks to materially slow economic activity, particularly in the first half of this year. We have therefore revised our 2020 baseline growth forecasts for all G-20 economies,” Moody said.

South Africa last Thursday confirmed its first coronavirus case after one of its citizens returned from a visit to Italy.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations