[miningmx.com] – THE International Monetary Fund (IMF) has forecast economic growth of only 1.3% for South Africa in 2016 – the lowest level since the country’s 2009 recession, said Bloomberg News citing data from the bank.
In addition, growth in gross domestic product this year had been reduced to 1.4% from 2% and comes only two weeks before South African finance minister, Nhlanhla Nene, publishes revised growth forecasts, said the newswire.
The slide in economic growth was partly down to the reduction in China’s growth which curbs demand and lowers revenue for mineral exports, said Bloomberg.
“We have an underlying problem on the demand side, a lack of confidence and everything that goes with that,” said Johan Rossouw, group economist at Vunani Securities. “But we also have a problem on the production side where we are not competitive enough and have capacity problems,” he said.
Click here to read the full article
