The widely expected decision by Standard & Poor’s to upgrade South Africa’s investment rating for the first time in nearly two decades is welcome news for the economy.

Prof. Raymond Parsons, economist from the NWU Business School, in commenting on the decision by global agency Standard & Poor’s to upgrade South Africa’s credit rating, says it recognises the extent to which certain recent positive economic developments have improved South Africa’s fiscal position and growth outlook, which has strengthened investment sentiment.

“The Standard & Poor’s decision has now opened the way for South Africa to eventually extricate itself from its current junk status, but there is still a long way to go.”

Prof. Parsons says to regain full global investment status still requires South Africa’s economic steersmanship staying firmly on track over the next few years.

“Weaker growth would jeopardise the planned fiscal trajectory. Successful implementation of growth-friendly policies therefore remains the key – by ensuring that reform commitments will continue to be translated into tangible outcomes in confidence, stability, investment, jobs and service delivery.”