Johannesburg – The International Monetary Fund (IMF) has revised South Africa’s growth forecast for 2021 upward by 1%.
The World Economic Outlook report for October 2021 released on Tuesday states that South Africa’s gross domestic product (GDP) will now grow by 5% this year, up from 4% as previously forecast in July.
This development is considered good news for the country, which needs to show investors that the economy has growth potential.
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The IMF said the economic and fiscal policy assumptions underlying the projections in South Africa drew on the 2021 Budget.
“Non-tax revenue excludes transactions in financial assets and liabilities, as they involve primarily revenues associated with realised exchange rate valuation gains from the holding of foreign currency deposits, sale of assets, and conceptually similar items,” it said.
We forecast growth for emerging market and developing economies at 6.4% in 2021, a marginal revision from our July forecast. Growth will moderate to 5.1% in 2022. Read the latest World Economic Outlook to learn more: https://t.co/rZxuMa0qAl #WEO. pic.twitter.com/8hSPAZkZfb
— IMF Africa (@IMFAfrica) October 12, 2021
Picture: Getty Images
Compiled by Reginald Nhlapo