Moody's has revised its GDP growth forecast for South Africa downward to 1.5 for 2025, down from its earlier projection of 1.7.
The credit rating agency attributed the revision to global policy uncertainty and escalating trade tensions, which have prompted downward adjustments to growth forecasts worldwide.
Global credit rating agency Moody's has revised downward its economic growth forecasts for a number of G20 countries. It now projects US GDP growth at 1.0 for 2025, with a slight uptick to 1.5 in 2026.
For China, Moody's forecasts growth of 3.8 in 2024, followed by 3.9 in 2026 - a significant slowdown compared to the 5.4 growth recorded in the first quarter of this year.
Looking at South Africa specifically, a senior economist at Standard Bank, Elna Moolman, says Moodys expectation of 1.5 growth this year still looks on the higher side.
