By Meletus EZE
The International Monetary Fund (IMF), on Tuesday lowered its forecast for South Africa’s economic growth to 1.2 per cent in 2019 and 1.5 per cent in 2020.
The IMF, in its World Economic Outlook said its forecast was due to the country’s political and policy uncertainty, which had remained a constraint on activities.
The 1.2 per cent expansion projected by the IMF is down from its October 2018 forecast of 1.4 per cent.
The economy grew 0.8 per cent in 2018. South Africa has seen growth stagnate in the decade since the world’s financial crisis, with policy missteps under former President Jacob Zuma.
In February, the National Treasury said the Gross Domestic Product (GDP) would grow by 1.5 per cent in 2019.
The IMF said “Structural bottlenecks would continue to weigh on investment and productivity, while subdued metal export prices were also a risk”.
The IMF is referring to the country’s longstanding lack of skilled labour and competition in key industries.
Cyril Ramaphosa has pledged to re-ignite growth by attracting 1.2 trillion rand (86 billion dollars) of investments in the next five years and improving the Ease of Doing Business in the country.
He faces an uphill battle with nationwide electricity blackouts in March, which is expected to dim business and consumer confidence before national elections on May 8.===Reuters
