JOHANNESBURG, April 16 – The International Monetary Fund (IMF) has lowered its outllok for South Africa’s economic growth, saying it expects the country’s economy to grow by 2.0 per cent in 2015, down from its previous estimate of 2.3 per cent.
The new estimate is in line with the government’s target. The IMF has also lowered its growth forecast for next year, citing the country’s power shortages as the main reason.
The IMF’s revision follows the World Bank’s comments that the extent of damage that the energy crisis has caused to the South African economy should not be underestimated.
Economist Azar Jammine said here Wednesday that it unfortunately appeared that the IMF sees much of what was happening now manifesting itself more than anything next year. “Although there’s nothing exciting at 2,90 per cent growth, it confirms South Africa is in a 2.0 per cent growth mode and nothing better.”
The IMF has forecast the world economy to grow by 3.5 per cent this year and 3.8 per cent in 2016 with sub-Saharan Africa expected to grow by 4.5 per cent this year.
The IMF has highlighted an increasing divergence in the growth paths of the world’s major economies this year. It warned that the world economic recovery remained “moderate” and uneven because of the varying impacts of currency fluctuations and lower oil prices.