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IMF Lowers South Africa's Growth Forecast to 1%

The International Monetary Fund (IMF) has slashed South Africa's economic growth projection for this year from 1.8% to 1%. This revision is attributed to ongoing logistical challenges and electricity shortages plaguing the country.

In its latest World Economic Outlook, the IMF also forecasts global growth to hit 3.1% in 2024. However, the report warns that South Africa, like other nations with upcoming elections, may face spending pressures that could undermine fiscal stability. Chief of Research at the IMF, Daniel Leigh, emphasizes the urgent need to address the energy and logistics crisis as a top priority.

Leigh stated, "Our forecast reflects the challenges of 2023, marked by significant growth constraints due to power disruptions. While we estimate growth at 0.6% for 2023, we anticipate a gradual increase towards 1% in 2024."