South Africa’s gross domestic product (GDP) is projected to grow 0.7 percent in 2019, said International Monetary Fund (IMF) in its economic outlook report released on Tuesday.

South Africa’s growth rate in 2018 was 0.8 percent. IMF said it would continue registering a sluggish growth this year due to energy constraints and labor issues. In 2020, the country’s growth rate is expected to be 1.1 percent.

“Growth in South Africa is expected to be more a subdued pace in 2019 than projected in April following a very weak first quarter, reflecting a larger than anticipated impact of strike activity and energy supply issues in mining and weak agricultural production,” the report stated.

In the first quarter of 2019, South Africa’s GDP declined 3.2 percent.

Power outages which impacted the country early this year and recession in mining and construction sectors were blamed for the GDP contraction in the first quarter.

Last week, the Reserve Bank said it was expecting an improved growth in the second quarter of the year. The bank initially projected the growth to be more than 1.5 percent, but later revised downward.

In Sub-Saharan Africa, growth is forecasted to be 3.4 percent this year and 3.6 percent next year. Nigeria’s growth is set to grow 2.3 percent this year and 2.6 next year.

“Higher, albeit volatile prices have supported the outlook for Angola, Nigeria and other oil exporting countries in the region,” the report said.

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