Euro Crisis Affects Growth in South Africa

Monitor Currency Exchange Rates

The South African credit rating is expected to be downgraded in the near future as the Euro Zone crisis continues to affect other nations.

Public debt for the country is currently said to be at a figure of around 30% of the GDP but this figure is continuing to rise.

As the Euro Zone is South Africa’s largest trading partner any problems with the former are also experienced by the latter.

Since 2010, the number of exports from the country to Europe has fall dramatically. Accounting for one third in 2010, the figure for this export is now just 23%.

Emerging market economist, Peter Attard-Montalto, commented that “South Africa’s debt is already increasing quickly and there is no certainty that [the country] has the political direction to get deficits down from higher levels”.

This means that South Africa is facing an increasingly worried economic climate, something which is only exasperated by their unemployment levels. Unemployment currently stands at 25%, with an estimated one million people losing their jobs since the recession two years ago.

These combined factors have meant that South Africa’s A3 rating was cut to a negative last month. Future growth is therefore of importance but, with the Euro Zone continuing to struggle, this seems unlikely.

Even Attard-Montalto stated that the current situation “ risks triggering downgrades” for the country and potentially for other nations as well.

Transfer Money to South Africa

If you are looking to invest in South Africa, think carefully about how you will be transferring money to South Africa. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to South Africa– which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.

Company Details

Euro Crisis Affects Growth in South Africa

Get a quick quote

Open Account with Currencies Direct

Currencies Direct are located at:
51 Moorgate,, Greater London,, , EC2 R6BH, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882