Fitch shifts South Africa view to stable

Fitch Ratings said it changed the outlook on South Africa to stable from negative and affirmed the issuer rating at BB-.

“The revision of the outlook to stable reflects the faster than expected economic recovery, the surprisingly strong fiscal performance this year and significant improvements to key GDP-based credit metrics following the re-basing of national accounts,” Fitch said in a press release.

The agency said it sees the country’s GDP rebounding to pre-pandemic levels during 2022.

“We expect GDP to rise 4.7% in 2021, boosted by base effects following the 6.4% contraction in 2020. Growth will slow to 2% in 2022, held back by the low carry-over from a weak 2H21, continued effects of the pandemic and electricity shortages, with a moderate strengthening to 2.4% in 2023 as the negative output gap remains large,” Fitch said.

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