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Fitch Takes a Dim View on SA Growth, Wage Negotiations

SOUTH AFRICA
  • *S. AFRICA'S TREND GDP GROWTH LIKELY TO REMAIN BELOW 2%: FITCH
  • SEES PUBLIC-SECTOR WAGE FREEZE AS UNLIKELY
  • So far, the government has remained resolute on its fiscal consolidation commitments to a 0% wage increase
  • but unions have yet to embark on their national strike
  • Historically SA has caved to above-inflation wage demands in previous years
  • but with the financial situation especially tense domestically, we're already seeing govt fighting harder than in previous years.
  • At this juncture its very hard to say whether govt will cave, but the ANC has been taking positive strides in recent weeks and may surprise the critics
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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