IMF Warns South Africa economy risks stagnation(EN)

JOHANNESBURG – South Africa’s growth is set to decelerate sharply this year due to power cuts and the economy risks stagnation, the International Monetary Fund warned Wednesday.

The near-term growth outlook for Africa’s most industrialised economy has deteriorated, an IMF team said after a visit to the country.

“South Africa’s economic and social challenges are mounting, risking stagnation amid an unprecedented energy crisis, increasingly binding infrastructure and logistics bottlenecks…” said in a statement.

“Real GDP growth is projected to decelerate sharply to 0.1% in 2023 mainly due to a significant increase in the intensity of power cuts, as well as the weaker commodity prices and external environment,” it added. Click here to read full article