Economic growth in South Africa is expected at a more subdued pace in 2019. This is contained in the latest World Economic Outlook update released by the International Monetary Fund (IMF).
The report, released on Tuesday, broadly shows that global growth is still sluggish, but South Africa’s Gross Domestic Product (GDP) is expected to grow by 1.0% in 2019.
The report forecasts global growth at 3.2% this year and picking up to 3.5% in 2020.
According to the World Economic Outlook, South Africa’s low growth projection follows a very weak first quarter.
GDP declined by 3.2% the first quarter of 2019, the largest quarterly drop in GDP in 10 years. The report says this reflects a larger than anticipated impact of strike activity and energy supply issues in mining as well as agricultural production.
Growth in Sub-Saharan Africa is expected at 3.4% this year and 3.6% in 2020. It says this is as strong growth in many non-resource intensive countries partially offsets the weak performance of the region’s largest economies.
Click below to read WEO’s update: