2024-02-16 10:02:13
The biggest risks to South Africa’s economic outlook in 2024 come from insufficient energy supplies and the problem of public debt sustainability, revealed “Allianz» in a new report.
«Power outages prevent businesses, industry and households from realizing their full potential“, said the German insurer in its quarterly Country Risk Atlas, based on the latest economic developments and the business environment.
Highlighting the devastating effects of power cuts on the South African economy, he noted that it is unlikely that sufficient supply capacity will be generated over the next 12 months.
Furthermore, the report, which assesses the risks of debt non-payment in 84 major economies, notes that the worsening of the debt trajectory is another factor that might weigh on the economic outlook of the country.
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«Due to considerable short-term absorption of debt interest revenue and an increase in sovereign bond yields, South Africa is at the bottom of the sustainability risk assessment rankings. public debt“, a turned Allianz
He added that the situation might be further exacerbated by increased pressures on public finances due to the deployment of social programs, the difficulties encountered by public enterprises, as well as the holding of general elections in the coming months.
Furthermore, the report warns of the erosion of state credibility which poses an additional risk to the country’s economic prospects.
«Worsening conflicts between political elites and the resulting increase in violent uprisings further weigh on the legitimacy of the state», we point out.
Likewise, the document questions the ability of the African National Congress (ruling ANC) and the government to deal with the social unrest threatening the country.
With MAP
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