IMF lowers SA economic growth forecast

The International Monetary Fund has dropped its forecast for South Africa’s economic growth in 2015 to 2.1 percent, according to Wednesday’s Business Report.

This is a decrease of 0.2% from the IMF’s October 2014 forecast.

The forecast for local growth for next year was also reduced to 2.5%, down by 0.3%, according to the report.

The RMB Global Market Research said its outlook on South Africa remained bearish.

“While the oil price will provide a much-needed reprieve in the short term, export prices remain depressed,” the organisation was quoted as saying.

It said structural constraints on electricity supply, transport infrastructure and labour productivity would continue to plague the economy for the foreseeable future.

The global lender also lowered forecast growth for South Africa’s biggest trading partner, China, to below seven percent, according to the report.

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IMF lowers SA economic growth forecast