The International Monetary Fund on Wednesday announced a bleak forecast for SA for 2023, with economic growth projected to reach only 0.1%. | News24_Business
The IMF has a bleak forecast for the SA economy in the years ahead.
The bank also cast doubt on the Treasury's budget framework, as it failed to properly reflect debt relief payments to Eskom. News24 Business front pageThe International Monetary Fund on Wednesday announced a bleak forecast for SA for 2023, with economic growth projected to reach only 0.1%. Its forecast for the medium term is only a little better, with growth of 1.5% expected, well below the 1.7% rate of population growth. This means South Africans will continue to get poorer per capita, with poverty and inequality set to rise.
The IMF also disagreed with the National Treasury's budget framework, pointing out that contrary to claims that the budget deficit would narrow, it expected the deficit to widen.The weak growth outlook, which it said was driven by power cuts, lower commodity prices, and an unfavourable global environment, is considerably more pessimistic than the National Treasury in the February budget. The Treasury projected growth of 0.9% for 2023, 1.5% in 2024, and 1.8% in 2025.
In addition to SA's structural constraints, the IMF warned that"the economy remains exposed to external shocks and capital flow volatility, in the context of tighter global financial conditions, and volatile commodity prices related to Russia’s war in Ukraine".
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