S&P flags oil risks and slow growth for South Africa
S&P warns that rising oil prices and low growth threaten South Africa despite fiscal progress. The agency notes the country is a growth outlier among its peers.
Insights:
S&P Global Ratings warned on Tuesday that rising Middle East oil prices threaten the consumer-led economy of South Africa as growth remains an outlier among peers. The credit rating agency revised its oil price forecast to $100 for the remainder of the year, pressuring a nation already trailing emerging market competitors. High energy costs risk stalling fiscal consolidation by driving inflation and weakening tax revenues through dampened consumer spending.
