Merrill Lynch revises SA growth forecast

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.

READ: Rand tumbles as recession dims investor sentiment

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.