SOUTH Africa’s economic recovery remains fragile and growth is expected to hold below 2% in the medium term because of policy uncertainty, high public debt and constraints to investment, the International Monetary Fund (IMF) said on Friday.
In a statement issued at the end of discussions with South Africa, the IMF said the country’s recovery from the Covid-19 pandemic had been faster than expected, but its durability remained uncertain.
South Africa’s National Treasury responded by saying it was “somewhat more optimistic” than the IMF on the medium-term growth outlook, seeing a gradual recovery in investment and confidence.
“The National Treasury acknowledges the difficult juncture South Africa is at,” it said in a statement, adding it was committed to placing public debt on a declining path and reducing budget deficits.
The IMF forecasts South Africa’s economic growth at 1.9% in 2022 after an estimated 4.6% rebound in 2021, but sees it easing to 1.4% in the medium
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