Cape Town - The International Monetary Fund (IMF) said on Wednesday it had cut its economic growth projections for South Africa to 3.0% for this year and next due to a sluggish global economy.
“Growth has slowed down very dramatically and we’ve revised our numbers, reflecting both domestic trends and global trends. We’ve revised growth to 3% this year and next at this juncture,” IMF representative Abebe Selassie told members of parliament.
In October, the IMF said South Africa’s economy would grow by 3.5% this year.
The IMF’s latest growth expectations are largely in line with those of the National Treasury, which last month also cut its forecast for 2011 to 3.1% from 3.4%.
Africa’s biggest economy has been hit hard by a slowdown in the eurozone, its biggest major trading partner.
Reserve Bank governor Gill Marcus said on Tuesday a meltdown in that region would have severe implications for South Africa.