Transnet woes see IMF slashing SA's growth outlook
The International Monetary Fund (IMF) says logistical challenges at Transnet are some of the reasons the country's economic growth forecast was downgraded.
The IMF slashed from 1.8% to only 1%.
The state-owned company has been battling a huge backlog at the country's seaports for months.
Last year, the IMF cited load shedding as a significant contributor to lower economic growth.
The IMF released the latest World Economic Outlook data in Johannesburg on Tuesday.
Economist at IMF Daniel Leigh says they estimate South Africa to grow by 1%.
"Forecast for South Africa stats with what happened with 2023, a very low growth year in the context of power disruptions, 0,6% was our estimation of growth in 2023, but then in 2024 we see a gradual increase towards 1% that is a lower number we had than in October by 0,8% down"
"The main reason for the downgrade is that there are some additional disruptions in the logistical sector, rail, and ports, and that combined with the continuing challenges with the electricity production. But as those bottlenecks ease, we see growth gone up to 1,3% next year."
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