According to the most recent IMF Global Economic Outlook Report, South Africa’s economy will expand during the next two years

Despite the nation’s problems, the economy of South Africa is anticipated to recover during the next two years.

According to the most recent global economic forecast report from the International Monetary Fund (IMF), Mzansi will continue to be the second-largest economy in sub-Saharan Africa. In 2023 and 2024, respectively, the economy is predicted to grow by 1.3% and 1.4%.

South Africa is one of the top five economies to monitor, claims Business Insider SA. The nation’s Gross Domestic Product (GDP), which is projected to be around R7.3 trillion, is predicted to increase over the following years.

The IMF makes optimistic expectations for 2024 global growth as well. The forecast is less dismal, which could indicate a turning point with falling inflation, according to the fund’s head economist Pierre-Olivier Gourinchas.

However, according to City Press, growth would slow down in nine out of ten industrialized economies this year. The United States of America’s growth is predicted to drop to 1.4%, while the Eurozone might face greater difficulties.

Additionally, the global inflation rate of 6.6% in 2023 and 4.3% in 2024 may be above pre-pandemic levels. According to Gourinchas, there are indications that recent interest rate increases are beginning to reduce demand and inflation.

According to a separate story from Briefly News, the IMF raised its projection for global GDP on Monday, noting unexpectedly robust consumption and investment as well as an additional boost from China’s removal of zero-Covid restrictions.

The effects of Russia’s invasion of Ukraine last year, economic downturns, and initiatives to contain skyrocketing living costs have slowed global growth.

In light of this, the International Monetary Fund projects that the global economy will grow by 2.9% this year, dropping from 2022 to a pace that is historically low.

Source: Briefly News