Poor GDP figures released today revealed that South Africa has entered a technical recession following two consecutive quarters of negative economic growth, heightening the country’s risk of suffering yet another credit downgrade in the second half of the year, says Citadel Chief Economist and Advisory Partner Maarten Ackerman.

As Finance Minister Pravin Gordhan tabled what appeared to be a pro-poor budget, he has announced that relief will be given to the affordable housing market.

Moody’s Investors Service (Moody’s) has affirmed South Africa’s government bond long and short term ratings of Baa2 and P-2 respectively, and has assigned a negative outlook.