WORLD BANK SAYS SOUTH AFRICA’S ECONOMY SLOWLY RECOVERING, SEES 1.4 PCT 2018 GDP GROWTH

JOHANNESBURG– South Africa’s economy is improving but its recovery remains below that of other emerging markets, says a new World Bank report.

The Bank adds that the commodity outlook has improved in general and it has revised the country’s gross domestic product (GDP) growth rate upwards to 1.4 per cent this year and 1.8 per cent next year, reaching almost 2.0 per cent in 2020.

The South African Reserve Bank leading business cycle indicators rose in the last quarter of 2017, supporting the case for further improvement.

The World Bank report received here Tuesday said the South African economy is growing but questioned how fast The report shows that although some green shoots are starting to show, it questions the sustainability of this improved growth.

The Bank argues that consumption will likely continue to remain the main driver of growth and tailwinds from the agricultural recovery are expected to taper off into 2018.

However, the report warns that the country’s growth potential is limited as unemployment and inequality remain high. south Africa is projected to remain largely below the average growth rate of 4.5 per cent this year, lagging behind its peers.

Source: NAM NEWS NETWORK