Agri Hour
Possibility of sub investment grade rises for SA─── CHRISTAL-LIZE MULLER 06:34 Mon, 04 Nov 2019
A senior economist at FNB believes the severe deterioration in the fiscal deficit is credit negative and might place South Africa sovereign rating on a negative outlook.
Siphamandla Mkhwanazi, a senior economist at FNB, is of the view that the likelihood of a downgrade to sub-investment grade over the coming months has risen substantially.
Over the Medium Term Expenditure Framework (MTEF) the main budget expenditure is projected to average 32.4% of the Gross Domestic Product. The revenue average is estimated at 25.9%. He says this brings the main budget balance to a significantly weaker deficit of 6.4% to the GDP compared to the 2019 budget estimate of a 4.6% deficit for 2019/10.
Here is Mkhwanazi...
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That was Siphamandla Mkhwanazi, a senior economist at FNB, only on Before Dawn.
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