FILE: A man walks past the International Monetary Fund (IMF) headquarters in Washington DC on 5 September, 2018. Picture: AFP
JOHANENSBURG – The International Monetary Fund (IMF) has revised its growth forecast for South Africa from 4% to 5% for this year.
It’s published its latest growth outlook for the world’s major markets on Tuesday.
While this is good news for the country, the fund has indicated that growth is expected to slow to 2% next year.
Despite COVID-19 continuing to flare-up around the world, the IMF said global economic recovery was set to continue.
However, the pandemic has affected growth with the global projection for this year revised down marginally to 5.9%.
The IMF has forecast it to be unchanged next year at 4.9% due to the continued effects of the pandemic.
South Africa is expecting a fourth wave in December with the official death toll at over 88,000.
Globally the toll stands at over 4.675 million people.
The IMF said the pandemic had affected critical links in global supply chains, resulting in longer-than-expected disruptions, further feeding inflation in many countries.