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IMF sees slower growth in South Africa

December 09, 2021 / 11:39 AM
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Sharjah24 – AFP: South Africa's economy has rebounded after Covid, the IMF said Wednesday while predicting slower growth than the government's forecast with a "lackluster" mid-term outlook.
While the country's finance ministry predicts the economy will grow by 5.1 percent this year, the International Monetary Fund said it expects growth to be 4.6 percent.

South Africa's economy contracted 6.4 percent last year, when a strict lockdown brought most economic activity to a standstill in the continent's most industrialised country.

Rolling power cuts forced by ageing and poorly designed power plants have added to the economic woes.

Deadly riots in July also spooked investors, as businesses were looted and trashed in the two most populous provinces of Gauteng and KwaZulu-Natal.

The IMF said investors were put off by South Africa's unreliable electricity, telecoms and transportation. It also called for more flexibility in the labour market, improved education, and strengthened anti-corruption efforts.

The Treasury noted the IMF's report, and said its findings largely align with efforts already underway to kick start the economy.
 
December 09, 2021 / 11:39 AM

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