Bloomberg News

Gordhan Says Moody’s South Africa Outlook Cut a ‘Wake-Up Call’

November 24, 2011

Nov. 24 (Bloomberg) -- Moody’s Investors Service’s downgrade of South Africa’s credit rating outlook and the European debt crisis is a “wake-up call,” Finance Minister Pravin Gordhan said.

South African policy makers have an opportunity to act to address the risks holding back economic growth, Gordhan said in a speech in Johannesburg today. The government has the flexibility to allow its budget deficit to widen temporarily to support economic growth and job creation, he said.

Government investment is a key driver of economic growth and it’s “critical” to continue investing in infrastructure, Gordhan said. Policy certainty, including on nationalization, is needed to restore foreign investor sentiment, he said.

To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net


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