Moody's cuts South Africa's growth forecast

File: Moody's says the country's economy remains stuck in low gear due to lacklustre domestic demand.

File: Moody's says the country's economy remains stuck in low gear due to lacklustre domestic demand.

AFP/Emmanuel Dunand

JOHANNESBURG - The rand has taken another turn for the worse after ratings agency Moody's cut its growth forecast for South Africa.

It now expects the economy to grow at 0.7 percent this year after saying in September that the economy would grow by 1.5 percent. 

Moody's says the country's economy remains stuck in low gear due to lacklustre domestic demand.

READ: Moody's reduces SA's growth outlook

The ratings agency has also pointed to the detrimental impact of widespread power outages on manufacturing and mining activity.

Moody's statement matters as it's the only ratings agency that still has South African sovereign debt at investment grade.

Source
eNCA