Widespread concern over SA's sluggish economic growth
The South African Reserve Bank revised the country's growth outlook for this year to 0%.
JOHANNESBURG - There is widespread concern that the country's economic growth will remain sluggish in the near term, with economists in agreement that government needs to act decisively to turn the situation around.
South African Reserve Bank Governor Lesetja Kganyago announced yesterday that the central bank had revised its growth outlook for this year to zero percent.
He also announced that interest rates will remain unchanged.
Kganyago says overall growth in the country should take some time to improve.
However, FNB Chief Economist Sizwe Nxedlana says government needs to take action by also incorporating the private sector.
"I think where growth will come from is we can get the implementation of the type of reform that can boost confidence."
Economist at Pan African Investment and Research Dr Iraj Abedian says there also needs to be political reform.
"It means the economy is not paying the price for the political missteps and political management of the country."
Kganyago says the Monetary Policy Committee was reluctant to change interest rates but will be keeping a close eye on inflationary pressures.