South African economy not headed for a recession: S&P

Ratings firm S&P Global Ratings said on Monday it does not see South Africa's economy slipping into a recession soon but warned that economic reforms had to be implemented to avoid a downgrade in December.

S&P affirmed the investment grade rating of Africa's most industrialized country on Friday, keeping at BBB- with a negative outlook, but lowered its economic growth estimate to 0.6 percent from 1.6 percent.

South Africa expanded by only 1.3 percent in 2015 and has seen major industries contract as a weak currency, low consumer demand and rising inflation weigh.

On Monday, the agency also said it was concerned that political upheavals could derail the economy and that it expected tensions to intensify ahead of local government elections on August 3.