INFOGRAPHIC: South Africa – Return to Growth Undermined by Complex Debt Burden

 

This week, South Africa’s quarterly growth figures were released indicating the country had bounced back from rocky start to 2019. However, this modest fillip obscures underlying weaknesses in the South African economy, especially its growing public debt. This burden is complicated by vast guarantees to crisis-stricken State-Owned Enterprises (SOEs), which account for over half the country’s contingent liabilities. This exposure will continue to undermine FDI in the months ahead and is likely to see Moody’s downgrade South African debt to junk status later this year.   

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