High unemployment a challenge for government’s plan to raise growth
Sarb revised down the country’s growth forecast by 0.1percent for 2019, as a result of slowing global economic growth.
The bank yesterday said the forecast was due to lower economic growth than previously expected in the third and fourth quarters, and downward revision to global growth.
The Sarb lowered South Africa’s growth for 2019 from 0.6percent to 0.5percent, and said the forecast for 2020 and 2021 had decreased to 1.4percent from 1.5percent, and to 1.5percent from 1.7percent, respectively.
Moody’s said in a note to investors yesterday that the country’s high unemployment, income inequality, and social and political challenges had proved to be strong obstacles to the government’s plans to raise growth and contain fiscal deficits.
Source: iol.co.za
