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The International Monetary Fund (IMF) expects South Africa’s economy to have shown growth of 1.3% last year and to achieve growth of 1.4% this year.
Growth is expected to be supported by household spending and greater investments driven by structural reforms.
The IMF has commended the South African government for maintaining macroeconomic stability and resilience amid global uncertainty.
In its latest report, the IMF board of directors further praised South African authorities for lowering the inflation target to three percent.
However, it emphasised that trade and global policy uncertainty remains a risk.
Division Chief at the IMF, Delia Velculascu addressed the media during an online presentation.
“The South African Reserve Bank’s three percent target is an important policy achievement. The exit from the FATF greylist and continued progress of structural reforms under operation Vulindlela have supported confidence in the South African economy and led to a first credit rating upgrade in many years. In this context, we have revised up our projections in the near term and expect growth to reach around 1.3% in 2025 and 1.4% in this year and to gradually rise to around to 1.8% over the medium run.
https://www.youtube.com/watch?v=TWCRH3tdnGU
