adminRatings agency Moody’s cut its forecast for South Africa’s economy to a 2,5 percent contraction in 2020, citing the impact of a nationwide, five-week shutdown aimed at limiting the spread of the novel coronavirus.
In early March, before it downgraded the country’s credit rating to sub-investment status, Moody’s had forecast an expansion of 0,4 percent. Fitch and S&P Global Ratings also rank South Africa at “junk” status.
“We forecast real GDP will contract by 2,5 percent in 2020, as the coronavirus crisis weighs on economic activity,” Moody’s said in a research report dated April 14.
The country has the most confirmed coronavirus cases in sub-Saharan Africa, at 2,415, a number expected to rise significantly as more tests are conducted. The national lockdown started on March 26. — Reuters Africa.
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