Economic growth depends on SA leaders, says analyst
An economist feels now is the time for the country's leadership to do everything in its power to avoid a credit rating downgrade to junk status.
Ratings agency Fitch yesterday announced it had left the country's rating untouched at BBB-.
Standard and Poor did the same last week.
Also read: Ratings agency Fitch affirms SA's credit grade
South Africa now has six months before its next review.
Economist Phumzile Langeni says government is under pressure to implement effective measures.
''It will be important that any discussions around privatisation of certain assets get a bit of momentum. We have spoken about the restructuring or the reorganisation and mergers of some of the SOEs that will need to get momentum, more visible and increased participation and operation between government and businesses. We also need to have consistent messages,'' she said.
Political analyst Aubrey Matshiqi says political battles are having a negative impact on the economy.
''As we approach the ANC's National Conference and looking at the state of the organisation and looking at proxy wars that are taking place including the proxy battle between the president and the finance minister, it's highly unlikely the deficit is going to narrow. If anything, it might widen,'' he said.
(File photo: Gallo Images)