The IMF warned SA on Thursday that its economy was extremely vulnerable to external shocks and funding shortfalls, although it stuck to its earlier growth forecast for the country of 1% for 2017. In an executive report following a country visit in the last week of June, the IMF also said policy uncertainty linked to political turbulence would weigh on business and consumer confidence. SA’s economy entered recession in the first quarter and is suffering from an unemployment rate of close to 28%. Bitter divisions in the ANC as the contest to replace President Jacob Zuma intensifies, have also raised investor fears that policy to revive growth would take a back seat. “Following last year’s near standstill in economic activity, growth is projected to increase to 1% in 2017 and 1.2% in 2018, still insufficient to keep pace with the rising population,” the IMF said. Investor confidence has been depressed by political uncertainty following the axing of finance minister Pravin Gordhan in Ma...
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