JOHANNESBURG - Merrill Lynch is the second American bank to revise South Africa’s growth forecast after the country slipped into recession.
On Tuesday, Goldman Sachs revised its growth projections from a positive 2 percent for 2018 to 0.8 percent.
Merrill Lynch cut its growth forecast to 0.9 percent from 1.6 percent.
It also revised its growth forecast for 2019 from 1.8 percent to 1.5 percent.
The bank says the country could still get a reprieve this year and that it's keeping a close eye on government.
It says the weak growth means there is a growing risk of slower spending cycles in the medium-term.