Survey shows SA GDP growth at less than 5% in 2021
Economists surveyed by Bloomberg predict GDP will expand 4.9% in 2021, compared with a previous estimate of 5.1%
24 December 2021 - 10:11 Prinesha Naidoo and Sarina Yoo
Picture: 123RF/ALEXLMX
SA’s recovery from its deepest economic contraction in almost three decades risks stalling due to the fallout from a fourth wave of coronavirus infections driven by the Omicron variant.
Economists surveyed by Bloomberg predict GDP will expand 4.9% in 2021, compared with a previous estimate of 5.1%. Africa’s most industrialised economy is now expected to grow by 2% next year and 2.1% in 2023.
The revisions comes after more than 90 countries imposed travel bans on SA ahead of its summer holiday season after its discovery of Omicron and after output fell more than expected in the third quarter. Before the onset of the new strain, the government and central bank predicted the economy would grow by 5.1% and 5.2% respectively this year.
The evolution of the pandemic and ongoing electricity supply constraints remain risks to the outlook. Progress on some long-awaited structural reforms that Finance Minister Enoch Godongwana said the government is targeting by mid-February could bolster output from the new year.
More stories like this are available on bloomberg.com Bloomberg
South Africa’s recovery from its deepest economic contraction in almost three decades risks stalling due to the fallout from a fourth wave of coronavirus infections driven by the omicron variant. Gaphic: BLOOMBERG
Survey shows SA GDP growth at less than 5% in 2021
Economists surveyed by Bloomberg predict GDP will expand 4.9% in 2021, compared with a previous estimate of 5.1%
SA’s recovery from its deepest economic contraction in almost three decades risks stalling due to the fallout from a fourth wave of coronavirus infections driven by the Omicron variant.
Economists surveyed by Bloomberg predict GDP will expand 4.9% in 2021, compared with a previous estimate of 5.1%. Africa’s most industrialised economy is now expected to grow by 2% next year and 2.1% in 2023.
The revisions comes after more than 90 countries imposed travel bans on SA ahead of its summer holiday season after its discovery of Omicron and after output fell more than expected in the third quarter. Before the onset of the new strain, the government and central bank predicted the economy would grow by 5.1% and 5.2% respectively this year.
The evolution of the pandemic and ongoing electricity supply constraints remain risks to the outlook. Progress on some long-awaited structural reforms that Finance Minister Enoch Godongwana said the government is targeting by mid-February could bolster output from the new year.
More stories like this are available on bloomberg.com
Bloomberg
Fitch hikes SA’s outlook from negative to stable
Data shows mixed bag for households
Inflation at the highest level in four years as fuel prices bite
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Related Articles
Fitch unexpectedly upgrades SA credit rating outlook to stable
Wrapping up a roller-coaster year
WATCH: SA economy is shrinking
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.