IMF's projection for SA's economic outlook is more optimistic
South Africa’s economy is expected to grow by 1.3% in 2023 and 1.4% next year, according to the latest International Monetary Fund global economic outlook report.
Chief economist at Investec Annabel Bishop says investor sentiment has dipped in light of no clear solutions to end load shedding in the country. Inflation and rising interest rates have also added to the economy’s woes. Inflation risks remained tilted to the upside. Headline inflation is currently at 7.1% while food inflation was in the double digits at the last count. But electricity outages have increased the cost of food production, which can only mean that consumers will likely see food prices remain elevated.
Bishop said:"The looming threat of stage 8 load shedding, and outages including stage 6 so far, have eroded confidence in the domestic economic outlook, with no government solution in sight in the near-term, pushing the rand weaker."The IMF’s optimism extended to its outlook on global growth projections. It now estimates global growth will fall to 2.9% in 2023 from 3.4% last year but will rise to 3.1% in 2024. The 2023 outlook is 0.
"With tightening monetary policy and negative terms of trade shock due to the increase in the price of its imported energy, we expect growth to bottom out at 0.7% this year in the region. Emerging markets and developing economies have already bottomed out as a group with expected to rise modestly to 4% and 4.2% this year and next. With China’s economy reopening we project growth rebounding to 5.2% in 2023.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Door remains open for Manyama – Cape Town City boss | City PressCape Town City have not closed the door on almost-forgotten former Kaizer Chiefs midfielder Lebogang Manyama, despite the 32-year-old’s bid to rejoin the Citizens put on hold by a recurring knee injury
Read more »
Analysis | The disconnection between markets and the economy | City PressAnalysis | The disconnection between markets and the economy : SA’s economy is in the doldrums and facing many headwinds. On the flip side, the JSE All-Share index has been flying since the start of the year
Read more »
‘Win or lose, I will die Zakes Bantwini, the Grammy-nominated artist’ | City PressWith a week to go before arguably the biggest night of his music career, award-winning musician Zakhele Madida (aka Zakes Bantwini) cannot wait to jet off to the US, where he will rub shoulders with the who’s who in the industry
Read more »
‘ActionSA betrayed us,’ says DA | City PressThe multiparty coalition governments that have been running some of the big metros around the country are on the verge of collapse, following disagreements regarding deals that could have kept the DA in power in the City of Joburg. | City_Press
Read more »
Des goes back to her cricket roots | City PressDesiree Ellis played cricket before Banyana.
Read more »
Makhosazana Zwane-Siguqa | The case of our fab academic | City PressMamokgethi Phakeng is polarising, with most people falling into one of two categories.
Read more »