South Africa’s economy is now expected to grow by 0.6 percent in 2016, down slightly from the 0.7 percent seen in January, as weaker exports and policy uncertainty take their toll, the International Monetary Fund said on Tuesday.
In its April world economic outlook, the IMF reiterated its GDP growth projection for Africa’s powerhouse Nigeria to 2.3 percent this year, down 1.8 percentage points from the previous estimate in January. Growth in Kenya was now seen at 6 percent in 2016 from the 6.8 percent predicted last December.
The IMF said output from sub-Saharan Africa would remain subdued this year before picking up in 2017 on the back of an expected small rebound in commodity prices.
Investors have been worried that South Africa, which boasts the most industrialised economy on the continent despite coming second to Nigeria in size, could veer off prudent policies under political pressure, after President Jacob Zuma suddenly fired the finance minister in December. Read more