Absa has raised its 2021 economic growth forecast for SA to 3.8%, from 3.1% previously, but warned that the recovery from Covid-19 will be long and protracted with real GDP only returning to pre-pandemic levels in 2023.

The bank said structural impediments, such as power shortages and the absence of economic reforms, mean its medium-term GDP growth forecasts “from 2022 onwards” remain unchanged at about 2%. Absa also said that while it is now more “constructive” on the rand, it still feels the currency will end the year weaker than current levels. That’s according to its April 2021 quarterly perspectives report released on Wednesday...

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