File: Ratings agency Moody's has downgraded South Africa's credit ratings outlook from stable to negative.JOHANNESBURG - Ratings agency Moody’s on Thursday slashed South Africa's economic growth outlook for 2020 from 1.5percent to 1percent, citing global factors that were weighing-in on emerging economies.
Moody’s said while there were indications that the country's monetary policy direction was tightening, the trade tensions and geopolitical risk had injected additional uncertainty, making long-term spending and investment decisions difficult.Moody’s also revised other emerging markets such as Argentina and Saudi Arabia downwards.
“On the positive side, low energy prices, low inflation, and loose monetary policy will benefit emerging markets, provided that the monetary policy stance in advanced economies also remains supportive.” Earlier this month, Moody’s reviewed South Africa’s outlook from stable to negative, mainly due to unsustainable government debt, but maintained the country's credit rating status at investment grade.
The revised forecast compares with 1.2 percent forecast for 2020 by the National Treasury released in the