The South African economy may still struggle to muster economic growth of more than 1% in 2017 the International Monetary Fund (IMF) has projected in a report published on Monday. The global lender expected SA to grow by 0.8% in 2017 following the dismal 0.3% it has forecast for 2016, it said in the World Economic Outlook. The outlook is slightly more pessimistic than the National Treasury’s expectations for domestic growth. In October last year, Finance Minister Pravin Gordhan forecast an expansion of 0.5% in 2016, improving to 1.3% in 2017. But when delivering the medium-term budget policy statement Gordhan also cautioned that growth was expected to increase only moderately over the next three years and could be hampered by domestic risks, including new spending pressures and liquidity risks at some state-owned entities. Nedbank economist Busisiwe Radebe said the bank expected 0.4% growth in 2016 and 1.1% in 2017 — slightly higher than the IMF’s projection. "We are seeing a slight...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.