The International Monetary Fund (IMF) has cut its growth prediction for South Africa in 2022, citing a poorer than projected second half of 2021, and a weaker investment outlook.
The global currency group said in its global outlook report released on Tuesday that it now expects South Africa’s economy to grow by 1.9 percent in 2022. This is down from the 2.2 percent anticipated in October.
According to the IMF, growth will decrease even more in 2023, to 1.4 percent. However, the group judges that South Africa’s GDP increased by 4.6 percent as a result of a comeback following the 2020 Covid-19 outbreak and containment-related losses.
As the global economy begins 2022 in a weaker-than-expected position, the slower-than-expected growth is in line with other countries’ revisions.
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