The International Monetary Fund (IMF) has raised its growth forecast for South Africa’s economy for 2023 to 0.3% from 0.1% predicted in April.
- The IMF cited resilience in the services sector in the first quarter as the reason for the improved forecast.
- South Africa’s growth is still expected to be lower than in 2022 due to power shortages.
- The IMF also slightly lowered its growth forecast for South Africa for 2024 to 1.7% from 1.8%.
- The IMF’s global outlook was slightly more optimistic than in April, with global growth forecast at 6% for 2021 and 4.9% for 2022.
- The IMF recommended that South Africa should prioritize energy sector reforms and address long-standing structural issues to promote growth.
- The South African government has been under pressure to implement reforms to address the country’s economic challenges and promote growth.
- The IMF’s improved growth forecast for South Africa is a positive development for the country’s economy and could boost investor confidence.