Lesetja Kganyago: economic growth will not contract in Q2

South Africa's economy contracted 2.2 percent in Q1 of this year.

Lesetja Kganyago, governor of South Africa’s central bank, said on Friday that he does not expect economic growth to contract in the second quarter, after a 2.2 percent contraction in the first quarter of this year.

At the bank’s AGM, Kganyago said:

“At this stage, the high-frequency data for the second quarter indicate that a modest improvement is likely in the quarter, and the South African Reserve Bank (Sarb) does not expect a second consecutive quarter of contraction.”

He added that growth of 1.9 percent is expected in 2019, while the forecast for 2020 remains unchanged at 2 percent.