ECONOMY
Old Mutual cuts SA’s growth forecast
Economic growth has been cut to "a sickly" 0.8% from 1.2%, according to the group’s economic strategist, Rian le Roux
Old Mutual Investment Group is the first group in the financial sector to cut its 2017 economic growth forecast since the IMF released a grim report on SA last week. Economic growth has been cut to "a sickly" 0.8% from 1.2%, according to the group’s economic strategist, Rian le Roux. "[It’s] far below what is required and presents yet another year of disappointment," he said. SA urgently needed a recovery in confidence to avoid a deep structural decline, Le Roux told a media briefing on Wednesday. "The economy is at risk of an extended period of sub-potential growth, with slow growth in recent years already to blame for rising macroeconomic vulnerabilities and rating downgrades," he said. Old Mutual revised its economic growth forecast after a series of "major shocks" including the Cabinet reshuffle, credit ratings downgrades, a revised Mining Charter and the public protector’s challenge to the central bank’s mandate. Le Roux pointed to the IMF’s call for the government to reassure ...
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