SA economic growth lagging behind – IMF

2013-04-17 11:28

South Africa is lagging behind in economic growth in sub-Saharan Africa, according to global growth forecasts released by the International Monetary Fund (IMF).

Afrikaans daily Beeld reported that the IMF revised its global growth forecast yesterday and said it expected South Africa’s economy to grow by 2.8% this year.

However, its growth forecast for next year was revised down from 4.1% to 3.3% and it said it expected the unemployment rate to rise to 25.9% this year.

According to Beeld, the IMF said South Africa’s growth rate for both years was by far the lowest in sub-Saharan Africa, with the exception of Equatorial Guinea.

It expected the region as a whole to grow by 5.5% this year.

Meanwhile, the World Bank reportedly issued a report earlier this week showing that South Africa was holding back economic growth in sub-Saharan Africa.

Beeld reported that, according to the IMF’s global fiscal review, which was issued yesterday, South Africa’s budget deficit was expected to remain at 4.8% of gross domestic product this year, and therefore seemed unlikely to improve by year end.

The IMF warned that sluggish economic growth meant that South Africa’s public finances were now more vulnerable than the fund’s fiscal review in October 2012.

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