Higher IMF forecast for SA growth contains a warning
The global lender says SA’s economy will grow 3.1% in 2021 and 2% in 2022, showing it will take over two years to recover from 2020’s 7% plunge
The International Monetary Fund (IMF) has become the latest international organisation to upgrade SA’s growth outlook, though its forecast came with a warning of a long road to recovery for economies such as SA that rely on tourism and are behind with their vaccination programmes.
The IMF’s 3.1% forecast for SA, up from an estimate of 2.8% made in January, is just over half what it expects for the global economy. Helped by a rapid vaccination rollout and unprecedented stimulus funded in an era of record low interest rates, richer countries are expected to recover much faster, though the overall rate for emerging markets will get a boost from China, which was one of few a major economies to grow in 2020...