South Africa’s unrest likely to shave 0.7% off 2021 growth, says S&P
The recent unrest in South Africa is likely to shave 0.7% off the expected GDP growth in 2021; according to S&P Global ratings.
The protests supporting former president Jacob Zuma broke out this month when he handed himself over to authorities to start a 15-month jail term for contempt of court, that escalated into riots, in which 300 people killed causing extensive damage to businesses and infrastructure.
The unrest will likely shave about 0.7% or more the expected GDP growth in 2021, lowering private consumption, and slow the economic recovery, according to S&P report from July 26.
In addition “If the unrest were to recur and last for a long time, this would further pressure the economy and potentially stifle the rebound.”
The ratings agency said it did not expect an immediate rating action, but if the unrest was repeated or prolonged, it could pose risks to ratings.
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