Political uncertainty moves IMF to cut SA's growth forecast | Fin24
  • Still falling

    Annual consumer price inflation has dipped to its lowest level in 9 years.

  • Sabotage at Eskom

    President Cyril Ramaphosa says sabotage contributed to power cuts earlier in the week.

  • Digital Banking

    TymeBank says it will be switching gears in a bid to triple its size by the end of 2020.


Political uncertainty moves IMF to cut SA's growth forecast

Oct 10 2017 17:24

Cape Town - The International Monetary Fund (IMF) has cut South Africa’s growth forecast for 2017 from 1% to 0.7% due to “political uncertainty”. 

In its latest World Economic Outlook, the IMF said SA's GDP growth was expected to remain subdued, “despite more favorable commodity export prices and strong agricultural production, as heightened political uncertainty saps consumer and business confidence".

It expects growth to increase to 1.1% in 2018. 

The IMF was more positive about Sub-Saharan African economies as a whole. It expects an average GDP growth rate of 2.6% across the region, with highs of 7.6% in Côte d’Ivoire and 8.5% in Ethiopia.   

The cut to SA's projected growth puts the IMF’s 2017 forecast broadly in line with local economists.

In early September Stanlib chief  economist Kevin Lings said the investment manager expected 0.7% growth for 2017. FNB senior economist Mamello Matikinca has also said that GDP growth below 1% was expected for SA in 2017. 

Lesetja Kganyago, Governor of the SA Reserve Bank, said on September 21 that the bank's forecast for GDP growth for 2017 was 0.6%, with forecasts for 2018 and 2019 of 1.2% and 1.5% respectively.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:



Company Snapshot

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote