This, according to economist Lulu Krugel. Her comments follow in the wake of recent predictions by economists and analysts surveyed by Bloomberg. All 13 analysts predict Moody’s Investors Service, which rates the nation one level above S&P, will cut its assessment by December.

Krugel says the political situation in South Africa is aggravating the situation, as it creates the impression that government’s focus is not on driving growth and implementing policy. She adds the situation can still be turned around, but that it will be very difficult.

“Government needs to send a very strong and clear message that it is serious about policy implementation and economic growth. There are enough good things and positives in our favour to still turn the situation around,” Krugel added.

“When one takes the recent Budget into consideration, most rating agencies were confident that we are trying to keep costs down. But the main concern is economic growth. Up to now there have not been many positive indicators to show that South Africa is on a significant road to growth.”

“Looking at a couple of fundamentals; we at least look a lot better than Brazil, which has already acquired junk status,” Krugel concluded.

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