JOHANNESBURG - The International Monetary Fund has cut South Africa’s 2026 growth forecast to 1 percent down from 1.4 percent.
The downgrade follows a surge in global oil prices as the US-Iran war continues to disrupt energy markets.
The global institution cited the economic fallout from the Middle East war.
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Higher fuel costs have pushed up inflation, risks to growth and are limiting the Reserve Bank’s ability to cut interest rates.
The IMF now warns South Africa could face the weakest expansion among emerging markets in the coming year.