Economic recovery hindered by poor business confidence: Moody's

File: Moody’s warns poor business confidence implies reduced investment, which will negatively affect growth in an already weak economy. Photo: eNCA

JOHANNESBURG - Ratings agency Moody’s says the steep decline in the country’s business confidence is a setback to economic recovery.

Moody’s warns poor business confidence implies reduced investment, which will negatively affect growth in an already weak economy.

READ: Wait for Moody's fuels uncertainty

This will also make fiscal consolidation more challenging for the country.

South African business confidence fell in the second quarter, to a level not seen since the 2009 recession.

Moody's lowered South Africa's rating to the bottom of the investment grade table, with a negative outlook, earlier this month.

S&P Global Ratings and Fitch currently have South Africa at junk level.

eNCA

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