The International Monetary Fund (IMF) yesterday cut the growth outlook for South Africa to 1% for 2024, from 1.8%. Growth is estimated at 0.6% for 2023. It came as the Bretton Wood institution launched an updated World Economic Outlook (WEO) in Johannesburg. The weaker expectation is on the back of expected logistics and power challenges. The IMF had Pierre-Olivier Gourinchas, Chief Economist and Director of Research. The IMF expects lower growth in the US, weak demand in China, but expects slight improvements in growth in Europe. In Africa, growth is expected to rise while it expects inflation to continue to ease. Improvements in inflation is expected to allow Central Banks to reduce inflation later this year. Risks remain on tightened financial conditions and energy prices.
