This archive report was first published on 21 April 2020.
On April 21, 2020, Moody's released a statement projecting a 2.5% contraction in South Africa's economy for 2020.
The rating agency attributed the economic downturn to the nationwide shutdown, which has severely impacted various sectors, including transport, hospitality, mining, and manufacturing.
Moody's also warned that the coronavirus pandemic may lead to reduced household consumption, further exacerbating the economic situation.
South Africa's sovereign credit rating has been downgraded to 'junk' by rating agencies such as Fitch, S&P Global Ratings, and Moody's.
According to Moody's, South Africa's fiscal deficit may hit a record 8.5% of GDP in 2020.
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