The International Monetary Fund says that South Africa’s economy is expected to grow by 0.6% in 2016, down a fraction from 0.7% it forecast in January.<\/p>\n
The global bank highlighted weaker exports and policy uncertainty, and also cut its forecast for 2017, to 1.2%, from 1.8% in January.<\/p>\n
\u201cIn South Africa, growth is expected to be halved to 0.6% in 2016, owing to lower export prices, elevated policy uncertainty and tighter monetary and fiscal policy,\u201d the IMF said.<\/p>\n
National Treasury, in February, cut its own forecasts on the country to 0.9% for 2016, and 1.7% in 2017.<\/p>\n
Cees Bruggemans of Bruggemans & Associates, Consulting Economists said in a note on Wednesday (13 April, 2016) said that South Africa is unlikely to concentrate on its economic policy with ‘government entirely preoccupied with politics’.<\/p>\n
Bruggemans warned that any leadership change is likely still many months if not two to three years away.<\/p>\n
“Though Treasury is making a heroic effort to show our fiscal affairs in a positive light, what matters even more is the greater political and policy backdrop. This clearly has not inspired confidence for a long time, as reflected in a deteriorating market rating, rating agencies have been reducing our credit rating, and local companies have been taking their business elsewhere.”<\/p>\n
“Everything points to these processes continuing for the time being, potentially further undercutting our growth, market and credit rating,” the economist said.<\/p>\n
Instead of achieving 0.8% growth this year, or even only 0.5%, the actual number may even be negative, Bruggemans said.<\/p>\n
Moody\u2019s worried about SA growth<\/a><\/strong><\/p>\n This map shows South Africa\u2019s projected economic growth to 2024<\/a><\/strong><\/p>\n