Agriculture and mining growth forecast lifted by IMF
The Washington-based International Monetary Fund (IMF) has raised its forecast for economic growth in South Africa. It forecast growth of one percent for South Africa this year, up from the 0.8 percent prediction made in April.
The international lender has done this because the drought - considered the worst in more than a century - seems to have ended, meaning that agricultural production will lift, and rising commodity prices are set to boost the mining sector.
Paolo Mauro (pictured), who led the IMF team, said in the statement:
"Following last year's near-stagnation, there are signs that a modest improvement in the pace of economic growth is underway. The pace of recovery this year and the next is unlikely to prevent a further increase in unemployment and a continued decline in per capita incomes."
According to Bloomberg, the IMF welcomed the government's confirmation of fiscal goals following Malusi Gigaba's appointment as finance minister in March.