(Reuters) – Fitch has upgraded South Africa’s outlook for foreign currency issuer default ratings to stable from negative on Wednesday. This was due to a quicker economic recovery than expected.

Fitch stated that a recovery was underway, and the GDP seems to be on track for regaining pre-pandemic levels in 2022.

According to the rating agency, the rating was ‘BB-‘ for sovereign debt. The country is limited by its high government debts and growing inequality.

Fitch stated that the revision was a reflection of South Africa’s strong fiscal performance in this year, as well as significant improvement to GDP-based credit metrics after the rebasing national accounts.

South Africa continues to be impacted by the African pandemic in terms of economic performance. South Africa is the worst-affected country on the continent, according to Fitch. Fitch also stated that creditworthiness was less likely as a result of the increased number of confirmed cases and deaths.