Modest growth in economy expected
Modest growth in economy expectedConditions strengthen, but policy and global uncertainty could pose risks
SA’s economy is projected to grow moderately as economic conditions strengthen, but policy and global uncertainty may pose risks. The economy took a beating in 2016 with growth of 0.5% and is expected to recover to a modest 1.3% in 2017, according to the Treasury. This fell in line with the medium-term budget policy statement, which was revised down from the 0.9% forecast in the 2016 budget. The forecast may just be enough to keep credit ratings agencies at bay. Novare economist Tumisho Grater said: "While we are expecting higher economic growth for 2017, it is important to take into account that this is coming from a very low base." SA’s economic growth has declined from 2012 and forecasts have had to be revised down each year. Treasury director-general Lungisa Fuzile said: "The good news is that the domestic economic slowdown appears to have bottomed out. "Mounting pressures on the global trading system pose a serious risk to small open economies such as ours," said Fuzile. Global...
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