South African economy showing signs of recovery: president

South Africa's economy was showing signs of recovery, the level of economic growth have been much weaker than previously anticipated, President Jacob Zuma said on Monday night.

"Part of this is due to the challenging global economic environment. At the same time, we recognize as government that there are also some domestic constraints that we must attend to," Zuma said at a press briefing in Pretoria after meeting with business and labour leaders.

The meeting was called after Moody's Investors Service (Moody's) affirmed South Africa's government bond long and short term ratings of 'Baa2/P-2' respectively and assigned a negative outlook.

Moody's said South Africa's economic growth will start recovering beyond 2016 after reaching its trough this year.

Moody's is the only solicited rating agency that assigns the same rating for both the domestic and foreign currency denominated debt, Baa2 - a rating that is two notches above sub-investment grade.

The investment grade credit rating affirmation marks an end to the review period that started on March 8, 2016, when Moody's placed the country's ratings under review for possible downgrade.

To the relief of the South African government, Moody's did not downgrade the country's sovereign rating to junk status.

Zuma attributed that to the collaborative efforts of all the stakeholders involved.

He said Moody's had acknowledged that the country was at a turning point following years of weak economic growth.

"That is why we are pleased that we are working together more than ever before, as the various sectors. This is truly a very positive development for our country," Zuma said. Endit