World Bank cuts its forecast for SA’s growth
By Robert Laing - Jun 5th 2017, 12:35
The World Bank cut its forecast for SA’s GDP growth for 2017 by 0.5 percentage points to 0.6% in its June Global Economic Prospects report released on Sunday.
Its forecast for SA’s economic growth in 2018 was cut to 1.1% from its projection of 1.8% made in January.
The World Bank reduced its forecast for many commodity exporters, including SA, in its midyear report compared with its January report.
The new report said the expected recovery in commodity exporters was weaker than envisioned in January, mainly reflecting longer than expected adjustment to low commodity prices in some countries and, to a lesser degree, weaker energy price prospects.
"Recent activity in some metal exporters has been held back by special factors, including production bottlenecks in Papua New Guinea, policy uncertainty in Armenia and SA, and mining sector disruptions and natural disasters in Chile and Peru."
Reasons for lowering SA’s expected economic growth also included political uncertainty and low business confidence weighing on investment.
"Growth in SA is projected to recover from 0.6% in 2017 to 1.5% in 2018-19. A rebound in net exports is expected to only partially offset weaker than previously forecast growth of private consumption and investment, as borrowing costs rise following the sovereign rating downgrade to subinvestment level," the report said.
The World Bank remained bullish on the economic prospects of developed economies, holding its forecast for global economic growth in 2017 at 2.7%.
"A bright spot in the outlook is a recovery in trade growth to 4% after a post-financial crisis low of 2.5% in 2016," the report said.
© BusinessLIVE MMXVII
SA expected to sow fewer maize hectares than in previous seasons
26/11/2019 - 10:06
South African farmers are expected to sow 2.8% fewer hectares of the food staple maize next season than forecast in October after the planting season was delayed by rains, a Reuters survey of analysts showed.
SA on track for third year of moderating inflation
25/11/2019 - 09:41
SA’s largest asset manager Investec says SA is likely to see average inflation of 4.5% in 2020, with price pressure consistently moderating since 2016.
Processed meats units continue to take toll on Tiger Brands
22/11/2019 - 15:10
Food producer Tiger Brands, which is still reeling from the backlash of the listeriosis crisis, said the slow recovery in its value-added meats businesses ensured operating income fell by a fifth in its year to end-September.
The clever shift SA's economy can make: economist
13/11/2019 - 13:29
Finance minister Tito Mboweni’s medium-term budget gave a blunt presentation of the financial issues facing South Africa and it is clear that government has finally come to grips with reality, says Efficient Group economist Francois Stofberg.
Billions in investments flow in to improve SA's economy
13/11/2019 - 11:30
More businesses have pledged billions of rands in investment to the ailing South African economy at the second investment conference in Sandton.