CREDIT rating agency S&P Global has upgraded its outlook for South Africa to “positive” from “stable”.
“Recent favourable terms of trade in South Africa have improved the external and fiscal trajectory, while the country’s reasonably large net external asset position, flexible currency and deep domestic capital markets provide strong buffers against shifts in external financing,” S&P said in its report.
“We expect South Africa to post a current account surplus in 2022 – though smaller than in 2021 – for the third consecutive year, as prices for key metals and mining exports have risen significantly since the start of the Russia-Ukraine conflict,” said S&P.
It said that it expects higher-than-expected tax revenue, particularly from mining companies, will help to reduce the fiscal deficit and debt as a proportion of GDP relative to its expectations six months ago.
“Structural impediments are likely to continue to weigh on medium-term growth, particularly the
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