IMF drops SA 2018, 2019 economic growth forecast

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The International Monetary Fund (IMF) has cut South Africa’s economic growth forecasts for this year and next, calling for greater policy certainty and reforms of State-Owned Enterprises.

The IMF expects South Africa’s economy to expand 0.8 percent this year, down from a forecast of 1.5 percent in July and by 1.4 percent in 2019, down from a previous estimate of 1.7 percent.

In its latest World Economic Outlook report, the IMF welcomed recent measures taken in South Africa to tackle corruption and eliminate wasteful expenditure. But said further reforms are needed to increase policy certainty, improve the efficiency of SOEs, enhance flexibility in the labour market, improve basic education, and align training with business needs.