Fitch Sees South Africa Debt Ratio Rising to 79% by 2029 on Weak Growth
Updated
Updated · Bloomberg · Oct 26
Fitch Sees South Africa Debt Ratio Rising to 79% by 2029 on Weak Growth
1 articles · Updated · Bloomberg · Oct 26
Summary
79% of GDP is where Fitch now expects South Africa’s debt ratio to land in the year through March 2029, reversing the stabilization path projected by the National Treasury and Moody’s.
Weak economic growth is the main reason Fitch sees debt starting to edge up again after holding near 78% over the next two fiscal years.
About 78% debt stabilization remained central to Fitch’s June upgrade of South Africa to BB, still two notches below investment grade, with a stable outlook.
The new forecast highlights a longer-term fiscal risk for South Africa even as near-term debt dynamics remain broadly steady.