25.8 C
Abuja
Friday, April 3, 2020

South Africa revise 2016 economic growth down by 0.6%

South Africa’s economic growth is expected to moderate to 0.9 percent in 2016, comparing with the previous forecast of 1.5 percent for the year, the country’s central bank said on Thursday.

The domestic economic growth is projected to accelerate to 1.6 percent in 2017, down from the previous forecast of 2.1 percent for the year, the South African Reserve Bank (SARB) said.

Growth in 2015 is estimated to have averaged around 1.3 percent, the bank said after the quarterly meeting of its Monetary Policy Committee (MPC).

The bank’s estimate of potential output growth was also revised down from 1.9 percent to 1.5 percent for 2016, and from 2.1 percent to 1.6 percent for 2017.

Although there was a marginal increase in the bank’s leading business cycle indicator in November, the trend remains negative, consistent with the subdued outlook.

The global growth outlook appears to have worsened somewhat in recent weeks, contributing to a correction in global equity markets, SARB Governor Lesetja Kganyago said.

Although most of the downward revisions to global growth have been due to the deteriorating prognosis for emerging markets, more recently the risks of a slowdown in the U.S. have increased, amid declining consumer expenditure, and the impact of low oil prices and a strengthening dollar on business investment, said the governor.

While the recovery in the Euro area remains modest, the growth forecasts for the UK and Japan have generally been revised down.

Coupled with the above factors, South Africa’s domestic economic growth outlook remains weak, Kganyago said.

Emerging market growth prospects, particularly for commodity-producing countries, remain constrained amid persistent capital outflows, according to the governor.

There is also uncertainty regarding the efficacy of policy reforms that have been undertaken, Kganyago said.

 

– Xinhua

Leave a Reply

Leave a Reply

Leave a Reply

Latest News

Tanzania grants visa extensions for stranded tourists

Tanzania’s immigration department has extended visas for foreign nationals who can't leave the country because of the coronavirus pandemic.Foreign visitors, who applied online, were...

Columbian and Bissau-Guinean drug lords handed record jail terms

A court in Guinea-Bissau has handed record jail terms to two suspects accused of trafficking almost two tonnes of cocaine into the country, the...

Sierra Leone to enter a 3-day lockdown after first 2 coronavirus cases

Sierra Leone is the latest African country to launch a nationwide attack against the deadly coronavirus after two unrelated people tested positive for the...

With 16 deaths, Burkina Faso frees prisoners to stem virus spread

Burkina Faso president Roch Marc Christian Kabore on Thursday pardoned more than 1 200 prisoners in a bid to stem the spread of the...

Over 250 Europe bound migrants rescued in Niger desert, put in quarantine

More than 250 Europe-bound migrants were rescued in Niger's arid north and placed in coronavirus quarantine after being abandoned by traffickers, the International Organisation...

Preliminary results show low turnout in Mali parliamentary election

Official collation of result from Mali's parliamentary elections this week shows a turnout of just 36 percent, according to information from Mali electoral body.Reports...

Kenyan minister condemns mockery of coronavirus survivors online

Kenya’s Health Minister Mutahi Kagwe has criticised Kenyans for their mockery of two Kenyans who recovered from coronavirus.Kenyans online have criticised the announcement of...

Clinic closed in South Africa after nurse catches coronavirus

A clinic in South Africa's largest city, Johannesburg, has been closed after a nurse tested positive for coronavirus.It is thought the health worker contracted...

Nigeria, Chad, Niger announce joint military offensive on Boko Haram jihadists

Nigeria on Thursday said it had launched a "massive" joint offensive with troops from Chad and Niger against jihadists waging a decade-long insurgency in...

Ugandan student in Italy begs for food aid

A Ugandan student in Italy has appealed for food aid from the government in Kampala to help her and other students cope amid the...

More Articles Like This

- Advertisement -
%d bloggers like this: