IMF’s Latest Global Economic Outlook Report Predicts South Africa’s Economy Will Grow in the Next 2 Years

• The International Monetary Fund’s (IMF) latest global economic outlook report suggests positive improvement in South Africa’s economy
• The country’s economy is expected to see an increase of 1.3% in 2023 and 1.4% in 2024, allowing it to retain its position as the second-largest economy in sub-Saharan Africa
• The IMF’s chief economist Pierre-Olivier Gourinchas said the prediction is less gloomy, which could signal a turning point with inflation declining

JOHANNESBURG - South Africa’s economy is expected to see a positive improvement in the next two years despite the country’s challenges.

The International Monetary Fund’s latest global economic outlook report suggests that Mzansi will retain its position as the second-largest economy in sub-Saharan Africa. The economy is expected to increase by 1.3% in 2023 and 1.4% in 2024.

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According to Business Insider SA, South Africa is on its top five economies to watch list. The country is expected to have a Gross Domestic Product (GDP) of about R7.3 trillion, which is likely to continue growing in the coming years.

The IMF’s positive predictions also extend to global growth projections in 2024. The fund’s chief economist, Pierre-Olivier Gourinchas, said the outlook is less gloomy, which could signal a turning point with inflation declining.

However, City Press reported that nine out of 10 advanced economies will see growth decelerate this year. Growth in the United States of America is expected to slow to 1.4%, while the Euro area may see more challenges.

Global inflation may also remain above pre-pandemic levels at 6.6% in 2023 and 4.3% in 2024. Gourinchas added there were signs that recent interest rate hikes were starting to lessen demand and inflation.

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Social media users react to IMF’s report

@kd_sonar said:

“Chinese performance is impressive.”

@OscarChihuri wrote:

“For South Africa l have a very big doubt, considering the energy crisis?”

@kingzee_89 added:

“With the loadshedding in South Africa?”

IMF lifts 2023 growth forecast with a boost from China reopening

Briefly News also reported that global growth is set to be higher than expected this year, the IMF said on Monday, raising its forecast on surprisingly strong consumption and investment while China's lifting of zero-Covid restrictions provides another boost.

World growth has been bogged down by fallout from Russia's invasion of Ukraine last year, economic downturns and efforts to rein in spiralling costs of living.

Against this backdrop, the International Monetary Fund expects the global economy to expand 2.9% this year, slowing from 2022 to a rate that remains weak by historical standards.

Source: Briefly News