IMF cuts SA's economic growth forecast

The IMF has cut SA's growth forecast for 2016 but expects it to rebound in 2017.

Picture: EWN.

CAPE TOWN - The International Monetary Fund (IMF) expects South Africa's economic growth to rebound to 1.1% in 2017.

But the fund yesterday cut the country's growth projection for this year to 0.1%.

It highlighted global financial volatility, links to China and shocks to confidence as downside risks.

National Treasury's forecast is however more positive than the IMF, saying that structural reforms and targeted government interventions will support growth.

Nedbank economist, Busisiwe Radebe, said that domestic and international factors were affecting our economic health.

"What is happening internationally is holding us back but also what is happening here, like instability in the policy environment. That is the one thing that makes investors think 'do I still want to invest in this country?' so it's a two sided thing."

Economist Dawie Roodt said: "If the IMF says it's going to be 1%… they are always optimistic about numbers, so it's probably going to be less than that, I think we are going to see 0% growth for the year."