# Ratings agency Moody’s expects South Africa’s economy to grow by less than 1.5-percent a year over the next two-years. This is below the nearly five-percent forecast for Sub-Saharan Africa. Moody’s says it only expects changes in US tariffs to have some modest impact in the country, while softer demand from key trading markets such as China will hurt growth. It says political, social and other constraints dampened the pace of improvements to credit fundamentals. Moody’s adds that the 2026 local elections could test the country’s coalition government’s stability.
Moody’s expects SA’s economy to grow by less than 1.5% over the next two years