Behind South Africa’s ‘zero percent’ economy
The country’s economic growth this year, or the lack of it, will depend largely on the severity of load-shedding. But now a new constraint — political instability — is starting to cloud its prospects
13 April 2023 - 05:03
South Africa’s economic and social challenges are mounting. Given the unprecedented energy crisis and increasingly binding infrastructure bottlenecks, coupled with a less favourable external environment, the economy risks entering a period of stagnation.
This is the sobering assessment of the state of South Africa by the International Monetary Fund (IMF). The lender recently downgraded its 2023 growth forecast for South Africa from 1.2% to 0.1%, joining the Reserve Bank (on 0.2%) and Citi (0%) in being among the gloomiest forecasters on South Africa. ..
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