Moody’s is the second ratings agency in 2014 to downgrade South Africa and Fitch, analysts warn, could very well do the same next month.
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/ 11 September 2014
The four-week strike led by trade union Numsa in July disrupted the manufacturing sector causing production and output to shrink.
GDP data is expected to show SA rebounded from a contraction but there still remains little momentum to spur economic growth.
Consumer Price Inflation exceeded the Reserve Bank’s target band of 3% to 6% for the third time in .
The finance minister said government is committed to lowering the budget deficit but a sluggish economic growth outlook will present a challenge.
Economists are split on whether the South African Reserve Bank’s Monetary Policy Committee will hold or hike interest rates on Thursday.
Industry body Seifsa is said to be meeting with Numsa on Wednesday morning to discuss a wage agreement.
SA’s biggest metals union is verging on a wage agreement with employers one week after embarking upon a strike, the department of labour says.
Moody’s rating agency has warned that the country’s credit rating is at risk as the 220 000-strong Numsa strike enters its fifth day.
The new finance minister says the country is unlikely to meet a a growth target of 2.7% for the year given the protracted platinum strike.