The International Monetary Fund (IMF) says it expects South Africa’s economy to grow by 5% in 2021 before growth slows down to 2.2% percent in 2022.
The IMF has released its latest economic outlook for Sub-Saharan Africa, saying a lack of access to vaccines is dampening economic recovery in the region.
Confirming its sub-Saharan Africa growth forecast of 3.7% for this year and 3.8% for 2022, the IMF says rising commodity prices and favourable harvests have benefited some countries, though the overall picture is perilous.
Earlier this month, the IMF also noted momentum in global economic recovery has weakened due to an increase in the COVID-19 Delta variant that is holding back return to normalcy.
IMF Chief Economist Gita Gopinath says compared to their July forecast global growth projections have been revised downwards from 6% to 5.9%and remain unchanged in 2022.
The Organisation says economic outlook for low-income developing countries is worst due to pandemic dynamics.
With more than 30 million people falling back into extreme poverty, the crisis has not only worsened inequality but, according to the report, could add to the risk of social tensions and political instability.
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-Additional reporting by Amina Accram
