IMF cuts SA’s growth forecast as politics shake confidence
The revision comes ahead of the mid-term budget policy statement on October 25
The IMF has slashed its 2017 growth forecast for SA, bringing it in line with Reserve Bank and World Bank estimates. The revision comes ahead of the mid-term budget policy statement on October 25, which will be closely watched by credit ratings agencies. Finance Minister Malusi Gigaba is expected to cut the Treasury’s 1.3%, which was forecast in the budget earlier in 2017. After revising growth up to 1% from a previous 0.8% in its July World Economic Outlook, the IMF has now dropped its forecast for SA to 0.7%. In the September World Economic Outlook, the fund said: "In SA, growth is projected to remain subdued at 0.7% in 2017 and 1.1% in 2018, despite more favourable commodity export prices and strong agricultural production, as heightened political uncertainty saps consumer and business confidence." Nascence economist Xhanti Payi said: "The World Bank has already done the same, so it’s not unexpected. Everyone sees that we’re struggling with slow growth and weak investment, so thi...