Moody's lowers South Africa's growth forecast to 1.5% amid global uncertainties

MOODY’S Ratings agency has lowered South Africa’s growth forecast for 2025 on the back of expected slow global growth, driven by tariff uncertainty and trade tensions.

- SIPHELELE DLUDLA

The ratings agency on Tuesday said South Africa's gross domestic product (GDP) for 2025 will only grow by 1.5%, a 0.2 percentage points decrease from its previous forecast.

This growth forecast is in line with the 1.7% estimate from the SA Reserve Bank partly to subdued demand, and partly to lingering supply-side fragilities, but more optimistic than the downwardly revised 0.8% forecast by the International Monetary Fund last week.

In its Global Macro Outlook 2025-26 Update, Moody’s said global growth slowdown was underway as policy uncertainty added risks to the global economy. "Policy uncertainty weighs on a global economy that was already slowing. Uncertainty surrounding global economic policies is likely to take a toll on consumer, business and financial activity," Moody's said.