Downside Risks To Growth

July 2008 | Ratings Update

With no further outbreaks of xenophobic attacks over the course of July, we increased our short-term political risk rating to 65.0 from 62.5. Despite improvements in the security situation, we maintain our view that the risk to social cohesion and political stability will remain to the downside. Aside from surging living costs and ongoing animosity towards the refugee community, uncertainty of the ANC's future policy direction will continue to weigh on South Africa's risk profile over the medium term.

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