SA economy will lag behind sub-Saharan Africa, says World Bank
The bank says growth has been hampered by low business confidence and the recent spate of power cuts
SA’s economy will struggle to grow in line with the rest of sub-Saharan Africa as business confidence remains in the doldrums, said the World Bank. According to the Africa Pulse report produced by the Bank, the low business confidence holding back investment has largely been driven by the slow pace of structural reforms. “SA came out of recession in the third quarter of 2018 but growth has been subdued and really disappointing as policy uncertainty continues to hold investment back,” World Bank chief economist for Africa Albert Zeufack said in a conference call on Monday. The Bank left SA’s growth figures unchanged from its World Economic Outlook in October 2018 when it lowered forecasts from 1.8% to 1.3% in 2019 and from 1.9% to 1.7% in 2020. Growth for 2021 is estimated at 1.8%. “This gradual pickup in growth reflects expectations that consumer spending will strengthen, spurred by low inflation, and long-delayed structural reforms will help revive investment, as business confide...
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