The International Monetary Fund expects the South African economy to grow by only 0.9% this year, and forecasts growth of 1.2% for next year.
This is primarily because of logistical constraints.
By contrast, sub-Saharan Africa was likely to enjoy relatively robust growth, with the region’s economy expected to expand by 3.8% this year and 4% next year.
The global economy was expected to have a growth rate of above 3% for this year and next year.
The IMF said the risk for a hard landing for the global economy had receded, but medium-term growth prospects were the weakest in decades.
The chief economist of the IMF, Pierre-Olivier Gourinchas, was quoted as saying: ‘Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose.’
[Image: Gerd Altmann from Pixabay]