THE World Bank expects South Africa to grow by 2.1% in 2022, with the benefits of persistently high commodity prices offset by structural problems, including the country’s ongoing electricity shortages.
The 2022 forecast, which is included in the latest ‘Africa’s Pulse’ publication, is in line with the bank’s October estimate, but represents a 2.8% growth deceleration relative to the economy’s performance in 2021.
The report estimates that South Africa grew by 4.9% last year, which represents a 0.3 percentage point upward revision from October and a rebound from the 6.4% economic contraction of 2020.
“The recovery in South Africa, while benefiting from persistently high commodity prices, will continue to be held back by structural problems—including electricity shortages, transport and logistic inefficiencies, as well as labour and product market rigidities.”
The report says that the South Africa economy is projected to return somewhat above its potential growth of 1.1% in 2023
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