The International Monetary Fund (IMF) slashed South Africa’s economic growth outlook for the year by about half.
Initial growth estimates sat at 1.8% for 2024, but the Washington-based lender’s revised outlook downgraded the economy, with expectations that it will now only grow by 1%.
The IMF said the downward revision for South Africa’s economy in 2024 was on account of increasing logistical constraints.
The IMF’s Daniel Leigh said disruptions to the ports and rails, as well as the chronic power cuts, mean South Africa is already coming in from a low base.
“0.6% is our estimation of what growth was in 2023, but then in 2024, we see a gradual increase towards 1%.
“That is a lower number than we had in October by 0.8%, but as those bottlenecks ease, we see growth going up to 1.3% next year.”
Trouble in the logistics sector has not only been a drag on the country’s economy but also had an impact on the entire sub-Saharan region.
Overall, the IMF described global growth as reliant but slow, with projections steady at 3.1% for 2024.
