The International Monetary Fund has revised South Africa’s economic growth forecast downwards for 2018 and 2019.
This is the result of rising political uncertainty, which it says weighs on confidence and investment.
It projects that the country’s economy will grow by 0.9% over the next two years, down from a projection of 1.1% in 2018, and 1.6% in 2019.
The IMF noted that the numbers pre-date the most recent developments in the country that include the election of deputy president Cyril Ramaphosa.
According to Bloomberg, Ramaphosa is expected to adopt more business-friendly policies. His election as ANC leader helped boost the rand by 10% in December.
Growth in Sub-Saharan Africa is expected to pick up to 3.3% in 2018 from 2.7% in 2017.
The IMF says global growth will accelerate to its fastest pace in seven years as United States tax cuts boost investment.
The fund has raised its forecast for global growth to 3.9% in 2018 and 2019.
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