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Fitch warns SA's slow rate of vaccine roll-out poses risk to economy


Fitch warns SA’s slow rate of vaccine roll-out poses risk to economy
By Siphelele Dludla
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JOHANNESBURG - FITCH Ratings Agency on Friday warned that the Covid-19 pandemic would continue to pose risks for South Africa’s economy well into 2022 as vaccine roll-out was proceeding slowly.
Fitch said South Africa’s medium-term growth would remain low at less than 2 percent, a key rating constraint, complicating fiscal consolidation as reforms remained limited in scale and slow in implementation.
It said this will also limit the government s ability to contain the debt-to-GDP ratio.
“The government has secured enough doses to inoculate the adult population, but most will arrive only in the second half of 2021,” Fitch said. ....

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Economy falters but surprises on the upside in the 2020 fourth quarter


Economy falters but surprises on the upside in the 2020 fourth quarter
By Siphelele Dludla
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JOHANNESBURG - SOUTH Africa’s economy was thrown a lifeline of a slow recovery this year after economic contraction for 2020 came in better than expected on both an annual and a quarterly basis.
Statistics SA (StatsSA) said yesterday that the economy experienced its biggest annual contraction in seven decades in 2020 in spite of quarterly growth in the three months ending in December.
StatsSA said that the gross domestic product (GDP) shrank 7 percent compared with 0.2 percent growth in 2019 amid the devastating impact of Covid-19 pandemic.
The decline in the GDP was primarily led by a fall in manufacturing, trade, catering and accommodation; and transport, storage and communication. ....

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