IMF Predicts Even Slower Growth in South Africa Through 2020

The International Monetary Fund’s latest report on the World Economic Outlook has predicted that South Africa will continue to have a slower growth that much of sub-Saharan Africa, even slower than previously anticipated.

In its report, “Still Sluggish Global Growth,” which was released today, the IMF predicted growth in South Africa of 0.7 percent in 2019 and 1.1 percent in 2020, 0.5 and .04 percent less than predicted in April. It said global growth remained subdued and projected it would grow 3.2 percent for 2019, improving to 3.5 percent in 2020.

The IMF said that in sub-Saharan Africa, growth was expected to be 3.4 percent in 2019 and 3.6 percent in 2020, 0.1 percentage point lower for both years than in the April WEO.

“Higher, albeit volatile, oil prices have supported the outlook for Angola, Nigeria, and  other oil-exporting countries in the region. 

“But growth in South Africa is expected at a more subdued pace in 2019 than projected in the April WEO following a very weak first quarter, reflecting a larger-than-anticipated impact of strike activity and energy supply issues in mining and weak agricultural production.”