Moody’s halves growth forecast

Moody’s more than halved its 2018 economic growth forecast for SA after news that it plunged into a recession in quarter two. It now projects SA will expand 0.7% to 1%, versus the 1.5% estimated before.

While it had anticipated the government would miss its fiscal targets this year due to low tax performance, higher-than-budgeted interest payments and the wage bill, “slower growth will further challenge the task of the National Treasury,” Moody’s VP Lucie Villa said.– Bloomberg