The International Monetary Fund (IMF) has cut South Africa’s economic growth forecast for 2017.<\/p>\n
The group cited “rising political uncertainty” as the main factor behind the cut, stating that it has dented consumer and business confidence across the country.<\/p>\n
The IMF now predicts South Africa’s economy to grow just 0.7% by the end of 2017 – down from original forecasts of 1.0%.<\/p>\n
Growth is projected to remain subdued despite more favourable commodity export prices and strong agricultural production, as heightened political uncertainty saps consumer and business confidence,” the global lender said.<\/p>\n
South African growth should rise up to 1.1% next year, slightly lower than an earlier forecast of 1.2%, the IMF said in its October world economic outlook.<\/p>\n
Treasury had previously indicated that it expects the economy to grow by 1.3% in 2017, but this is likely to be revised when finance minister Malusi Gigaba gives his mid-term budget speech on 25 October.<\/p>\n
The rand staged a slight recovery on Tuesday, after facing steady losses against the dollar for the better part of a week. By 15h00, the rand was trading at R13.65 to the dollar – slightly stronger than R13.86 vs the dollar on Monday.<\/p>\n