[ALERT] World Bank raises SA 2018 growth forecast to 1.4%

The international lender said the improved forecast was supported by a rise in confidence, global growth and benign inflation.

Picture: Thomas Holder/EWN.

JOHANNESBURG - The World Bank on Tuesday raised its 2018 economic growth forecast for South Africa to 1.4%, from an earlier forecast of 1.1% growth.

The international lender said the improved forecast was supported by a rise in confidence, global growth and benign inflation.

Last month S&P Global Ratings raised its GDP growth forecast for South Africa to 2% for 2018, from 1% previously, and 2.1% for 2019, from 1.7%.

The rating agency says new leadership and ensuing policy announcements have boosted local and foreign investor confidence in South Africa, but structural challenges remain.

It has raised its growth forecast partly due to strengthening domestic and foreign investor sentiment following a change in the country's leadership and ensuing policy announcements.

S&P says an ongoing global upturn is also boosting demand for both commodities and manufactured goods.