S&P revises South Africa view to stable

S&P said it changed its outlook for South Africa to stable from positive and affirmed the BB- foreign-currency sovereign credit rating.

“Despite the government's attempts at reforming the power sector, acute electricity shortages pose downside risk to both short- and medium-term growth prospects. The economy contracted by 1.3% on a quarterly basis in fourth-quarter 2022 as electricity cuts rose sharply over the period.

“The downturn was broad based, with the agricultural and mining sectors seeing the largest declines. Full-year 2022 real GDP growth now stands at 2% and we have also revised down our real GDP growth forecasts for 2023 to 1% from 1.5% previously and expect growth to average 1.7% in 2024-2026,” S&P said in a press release.

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