IMF revises SA growth downwards

JOHANNESBURG - The IMF has revised its growth of South Africa downward.

The country's growth forecast has been lowered to 2.1 percent this year and expects it to grow by 1.1 percent in 2023 from a previous forecast of 1.4 percent.

The IMF released its October 2022 World Economic Outlook and revised global growth expectation for 2023 to 2.7 percent, down from 2.9 percent in July 2022.  

READ: IMF cuts 2023 global growth, warns major economies to stall

It expects the long-term average growth for the world economy is around 3.4 percent.

Sub-Saharan Africa is projected to grow at a faster pace than South Africa, at 3.7 percent next year.

The outlook highlights that more energy and food price shocks might cause inflation to persist for longer.

South Africa's economy has grappled with the energy crisis, KZN floods, rising food and fuel prices, and higher inflation.