Picture: 123RF/MOOV STOCK
Picture: 123RF/MOOV STOCK

The International Monetary Fund has upped its GDP growth forecast for SA in 2021 from 2.8% to 3.1%. The SA Reserve Bank recently raised its 2021 growth forecast from 3.6% to 3.8%, while some private-sector economists, such as Old Mutual, think growth this year may be as high as 5%.

Yet load-shedding bites again as a stark reminder of the fundamental weakness the economy displayed going into Covid-19 that still lurks as a threat to riding any global rebound waves.

It’s unclear, at this stage, whether the government’s decision to pause the Johnson & Johnson vaccine rollout will have a material impact given that it hasn’t even started yet.

An analysis published in a new World Bank report shows that vaccinating 60% of SA’s population to induce herd immunity against Covid-19 would have a benefit-cost ratio of more than 29, and that the economic benefits would be amplified by an accelerated vaccination rollout.

Michael Avery speaks to Kevin Lings, chief economist at Stanlib; Mamello Matikinca, chief economist at FNB; and Investec chief economist, Annabel Bishop about the prospects for economic growth for the remainder of the year.

Michael Avery and a panel talk about SA's economic climate

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