IMF warns of recession risk if state slides on economic reforms
Annual article IV report supports Reserve Bank governor’s position
06 June 2023 - 21:02
UPDATED 06 June 2023 - 23:05
The IMF has suggested that SA should formalise 4.5% as its inflation target, and has urged it to embark on stronger fiscal consolidation as part of a push to stabilise and grow the economy in a volatile global environment.
In its annual article IV report on SA the IMF warns that SA is at risk of a recession this year if it goes backwards on economic reforms, or if global economic growth and financial stability prove worse than expected. In a downside scenario the economy could contract 1.8% and unemployment rise to 37%, warns the fund, which now expects growth of just 0.1% for 2023...
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