Investment agency Moody’s granted South Africa a reprieve by not downgrading the country to junk status this time, but the decision of the International Monetary Fund (IMF) to lower our projected GDP growth rate for 2019 to 1,2% from 1,4% is a stark reminder that we need to pull up our socks with some urgency.
In its World Economic Outlook edition published yesterday, the IMF further indicated that South Africa’s projected GDP expansion for 2020 has been lowered from 1,7% to 1,5%.
This puts South Africa in the humiliating position of being among the worst performers in Africa south of the Sahara, with only Angola expected to average lower GDP growth than South Africa of the African countries listed in the report.
We need a solution to kick start our economy soonest or face further job losses. The current poor economic growth figures already inhibit employment creation, and workers under financial pressure lose their buying power as consumers, resulting in a struggling, even lower growth economy and minimal job creation. Right now, South Africa needs the opposite.
For further enquiries or to set up a personal interview, contact Stanford Mazhindu at 074 978 3415.