South Africa’s economy is heading for a showdown after International Monetary Fund (IMF) dropped its forecast for the country’s economic growth in 2015 to 2.1%. The latest report has decreased the country’s economic growth with 0.2% compared to IMF’s October 2014 forecast.
IMF also decreased the forecast for local growth for next year to 2.5%, down by 0.3% says the report.
RMB, a Global Market Research company mentioned that its projection on South Africa remained futile.
The organisation said the drop in oil price offered the much needed acquittal in the short-term but export prices will remain lowered. The organisation attributed the decrease in SA’s economy to structural constraints on electricity supply, transport infrastructure and labor productivity.
Apart from SA, IMF issued out a forecast growth on SA’s biggest trading partner, China, citing that it’s economic growth will go below 7%.