GDP growth revised down to 1%
24 May 2019 - by Staff reporter
South Africa’s 2019 GDP estimated growth rate had dropped to 1% for 2019, said the South African Reserve Bank yesterday.
In a statement issued by SARB governor, Lesetja Kganyago, based on the short term indicators and negative growth in mining and manufacturing - GDP is expected to average 1%, down from the initial 1.3% projection in March.
“The near term growth outlook is limited by the larger than expected slowdown in the first quarter, weak business and consumer confidence, as well as growing pressure on household disposable income,” Kganyago added.
The 2020 and 2021 forecast remains unchanged at 1.8% and 2%.
“It is now even more urgent to have a combination of prudent macroeconomic policies and structural reforms that raise potential growth and lower the cost structure of the economy.”