situation report

Jul 24, 2019 | 14:16 GMT

1 min read

South Africa: IMF Reduces 2019 Growth Outlook to 0.7 Percent

What Happened: The International Monetary Fund has adjusted its 2019 growth estimates for South Africa from 1.2 percent to 0.7 percent as part of its July 23 World Economic Outlook update.

Why It Matters: Ongoing power outages by state-owned power utility Eskom and union strikes continue to drag on South Africa's economic performance, which could ultimately result in another downgrade of the country's credit rating.

Background: South Africa is facing structural economic deficiencies, including widespread corruption in public institutions, despite efforts by the government of President Cyril Ramaphosa to clamp down on longstanding problems of graft.

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