Politics Weigh on South Africa's Rating

The video discusses South Africa's fiscal stability challenges, including maintaining fiscal stability, corporate governance of state-owned enterprises, and fiscal consolidation. It highlights concerns about debt, governance, and potential credit downgrades. The impact of political uncertainty, particularly intra-party tensions within the ANC, on economic priorities is examined. The video also forecasts GDP growth and investment challenges, emphasizing the risks posed by policy uncertainty and the likelihood of a recession.

What is one of the main challenges South Africa faces in maintaining fiscal stability?

• Weakening state-owned enterprises

• Focusing on fiscal consolidation

• Reducing socio-economic transformation

• Increasing corporate governance

Which factor is NOT a concern for Fitch when considering a downgrade?

• Political uncertainty

• Weakening governance of state-owned enterprises

• Failure to stabilize the deficit

• High GDP growth

How does political uncertainty affect South Africa's economic priorities?

• It enhances focus on fiscal consolidation

• It diverts attention from economic growth measures

• It stabilizes the political environment

• It increases investment in state-owned enterprises

What is the GDP growth forecast for South Africa in 2017?

• 2.5%

• 1.2%

• 0.8%

• 3.0%

Why are businesses hesitant to invest in South Africa?

• Strong corporate governance

• High GDP growth

• Stable political environment

• Policy uncertainty