World Bank sees ‘very fragile’ recovery for SA’s economy
Speaking in Parliament on Wednesday, the bank projects a growth rate of 1.1% this year and 1.8% next year, as long as there is no ratings downgrade
The World Bank sees a modest and very fragile recovery for the South African economy this year off a low base, one of its officials said in Parliament on Wednesday. The bank has projected a growth rate of 1.1% this year, rising to 1.8% in 2018 assuming there is no sovereign credit ratings downgrade. There were downside risks to this growth, however, unless private investment accelerated, the bank’s programme leader for SA Sebastian Dessus said when reporting on the World Bank’s Economic Update on SA to members of Parliament’s appropriations and economic development committees. The update was released in January. Dessus noted that an acceleration in private investment would reassure the credit ratings agencies. One of the ways to foster growth, he said, was for tax incentives to be re-oriented towards agriculture, manufacturing, construction and trade, as this would encourage private investment and increase job creation. These sectors have become more competitive and would benefit fr...
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