The lifting of SA’s drought may only provide temporary relief for the economy with signs the weather will take a turn for the worse again by the end of the year. According to the Regional Economic Outlook released by the International Monetary Fund (IMF) on Tuesday, the lifting of the drought and improved terms of trade are projected to drive SA’s growth to 0.8%, but political risks remain a concern. Growth in sub-Saharan Africa was 1.4% in 2016 and the IMF forecasts a moderate recovery of 2.6% in 2017. The three largest economies (Angola, Nigeria, and SA) are expected to contribute about three-quarters of the moderate regional rebound due to once-off factors such as a recovery in oil production in Nigeria, higher public spending in Angola, and the dissipation of the drought in SA. The drought played a role in dragging down economic growth in SA last year, but according to the South African Weather Service, the El Niño weather pattern, which brought on the drought, could return towa...
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