June brought with it a few notable domestic developments prior to the world’s focus on the UK’s astonishing vote to leave the EU.
The month started with the much anticipated announcement from S&P which affirmed South Africa’s foreign currency bond rating at one notch above sub-investment grade, or “junk” status. In its statement, S&P warned that low GDP growth and rising political tensions could still see a downgrade in its rating this year (December 2016) or next year “if policy measures do not turn the economy around”. All eyes are on our political and business leaders as they scramble to make the case for not downgrading South Africa. Most of the published analyses implies that this is essentially a fait accompli.