OECD says SA will be slow to get on its feet and slashes GDP forecast to 11.5% drop
The OECD’s revision leaves SA with the worst expected outcomes for 2020 of countries included in the update, followed by Argentina, Italy, Mexico and India
SA, one of the economies hit the hardest by the coronavirus pandemic and associated lockdown, will struggle to emerge from its deepest slump in about a century in the face of power cuts by Eskom and low demand, according to the Organisation for Economic Co-operation and Development (OECD).
The think-tank, whose members are the richest industrialised countries, downgraded its outlook for the country, saying GDP will shrink a huge 11.5% in 2020. That compares with the 7.3% forecast by the Reserve Bank, which is due to announce its latest interest rate decision on Thursday.