Moody's: SA to grow despite strikes
Johannesburg - Work stoppages in transportation and a "troubled labour market"
in South Africa will weigh on the economic rebound, according to Moody's Analytics, a division
of economic and research unit Moody's Corporation.
recently experienced an almost three-week crippling strike action by transport utility Transnet
workers that is estimated to have cost the economy over R7bn.
stoppages in the transport industry will likely weigh on growth in the second quarter by crippling
activity in agriculture and other export-oriented industries," the
factors, Moody's Analytics still expects the economy to grow by around 3% this year, boosted by
the export-oriented manufacturing and a substantial monetary stimulus.
"A number of
industries that supported the early stages of recovery will lost momentum but are not
anticipated to become drags on the economy," the report added.
remain confident that the eurozone recovery is fragile but on the mend following multi-billion US
dollar bailouts, Moody's Analytics held a different view.
the eurozone recovery to falter by the end of the year, sending Europe back into a moderate
recession," the report concluded.
- I-Net Bridge