Positive outlook for SA economy in near future 'unlikely'
It's not looking great for South Africa's economic growth in the near future.
The International Monetary Fund has put the country's growth forecast to just 1,1% for 2023, a contrast to the 3,7% growth rate expected for other sub-Saharan countries.
The news comes as South Africa is also facing a possible grey listing.
Lead economist at KPMG, Frank Blackmore, says with inflation at its current levels and ongoing strikes hurting our economy, it's unlikely a positive outlook will be achieved soon.
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"As the inflation is peeking, people are concerned about the buying power of their salary and are trying to negotiate increases in those salaries with whatever inflation is.
"But of course, that doesn't help, because that creates a second ground effect in inflation. First, we see things like fuel and food going up by currently 7.6%.
"Then if wages start going up by 7.6% you get to the second wave coming through the inflation recycle, which is obviously not good because that pushes interest rates higher."
