SA economic growth ‘unlikely’ to top 1%
Efficient Group chief economist Dawie Roodt fears that South Africa’s economic growth is unlikely to top 1% anytime soon.
Roodt was reacting to the IMF’s latest World Economic Outlook data, released on Tuesday.
The International Monetary Fund revised its economic growth projection for South Africa, lowering it from the previous estimate of 1.8% to 1% - with global economic growth expected to reach 3.1% in 2024.
This figure is 0.2% points higher than the IMF's previous forecast in October.
The main concerns centre around the crisis at Transnet and the shortages in electricity supply.
"We have to remember that 0.3% or 1% is insignificant," said Roodt.
"The reality is anything below 2% is simply not good enough, because anything below 2% simply means on the capita basis we will be getting poorer.”
Roodt said even if the economy grows by 3%, it will not be fast enough to reduce the country's unemployment rate.
"Even if it grows at 2%, it’s still not fast enough to reduce unemployment, as an example.
"When any economist or any organisation makes a prediction of below 1% it’s not nearly good enough.”
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