Harare - South Africa's economy could swing back to recovery in 2017, says the International Monetary Fund (IMF), but cautions that Africa's second largest economy would have to stave off expected further shocks from China, heightened global financial volatility and sovereign debt credit rating downgrades.
An IMF team visited Cape Town, Pretoria and Johannesburg in the past two weeks and met Finance Minister Pravin Gordhan, South African Reserve Bank governor Lesetja Kganyago, Minister in the Presidency for Planning, Performance, Monitoring, Evaluation and Administration Jeff Radebe as well as labour federations and business leaders.
The mission also held discussions with Trade and Industry Minister Rob Davies, Minister of Economic Development Ebrahim Patel, Commissioner of the South African Revenue Service Tom Moyane as well as other government officials during a visit that ended on Thursday.
"A muted recovery is envisaged from 2017. Risks to this outlook are tilted to the downside and include further shocks from China, heightened global financial volatility, and sovereign debt credit rating downgrades," said Laura Papi, leader of the IMF mission to SA on Friday.