Credit rating agency Moody’s has forecast that South Africa’s economy will grow by about 1.5% over 2022-23, constrained by a rigid labour market, weakening competitiveness and decaying infrastructure.
The electricity sector poses the greatest risks to economic growth prospects, with generation capacity already insufficient to cover the economy’s needs, the group said in a research note on Wednesday .
“The current administration, which came into power in 2018, has introduced some measures to address structural growth constraints, but the latter remains a challenge. Socioeconomic pressures and institutional weaknesses also complicate the government’s efforts to introduce reforms. As a result, growth has continued to underperform other emerging market economies,” it said.
Moody’s noted that the longer-term growth outlook will depend on the extent to which the government is able to advance its sectoral reforms, especially those aimed at rehabilitating electricity capacity. The group identified five key areas of concern and what the government needs to do to address these issues.Allow land restitution and redistribution, including through expropriation without compensation, but spare the economy by focusing on unexploited lands or unrightfully seized lands.Positive, because it supports social cohesion and growth. But until fully implemented in a way that ensures respect for the economic objectives, this is a source of uncertainty.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'War on whites' in South Africa - Roll call of victims - April 2022 - South Africa TodayWar on whites in South Africa – Roll call of victims – April 2022 via SATodayNews
Read more »
Electric cars are not yet a solution for South Africa | CitypressEvaluating the environmental footprint of electric cars.
Read more »
Major gas project a step closer to coming online in South AfricaEnergy group Renergen says it is making ‘strong progress’ in commissioning phase 1 of its Virginia Gas Project.
Read more »
EVs are the 'dirtiest means of personal transport' in South AfricaShould South Africans switch to electric cars to reduce their environmental footprint? The answer is no.
Read more »
SARS sends tax warning to South Africa as jobs crisis growsSARS has flagged a serious risk to South Africa’s tax base.
Read more »
FNB launches ‘bounce back’ loans in South Africa – how to applyFNB has partnered with the South African government on its bounce back loan scheme. The scheme is aimed at providing additional funding to qualifying businesses to grow the South African economy and to facilitate job creation.
Read more »