SA economy to grow less than 5% in 2021, Bloomberg survey

Growth of 2% next year and 2.1% in 2023 now expected.
Image: Supplied

South Africa’s recovery from its deepest economic contraction in almost three decades risks stalling due to the fallout from a fourth wave of coronavirus infections driven by the Omicron variant.

Economists surveyed by Bloomberg predict gross domestic product will expand 4.9% in 2021, compared with a previous estimate of 5.1%.

Africa’s most industrialised economy is now expected to grow by 2% next year and 2.1% in 2023.

The revisions comes after more than 90 countries imposed travel bans on South Africa ahead of its summer holiday season following its discovery of Omicron and after output fell more than expected in the third quarter.

Read: SA economy contracts 1.5% in Q3, more than expected

Source: Bloomberg

Prior to the onset of the new strain, the government and central bank predicted the economy would grow by 5.1% and 5.2% respectively this year.

Read: Treasury forecasts 2021 GDP growth of 5.1%

The evolution of the pandemic and on-going electricity supply constraints remain risks to the outlook. Progress on some long-awaited structural reforms that Finance Minister Enoch Godongwana said the government is targeting by mid-February could bolster output from the new year.

© 2021 Bloomberg

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2% growth is better than no growth at all….
In my opinion, South Africa has emerged resilient and positive inspite of being marginalized by the first world countries who, for reasons beyond our comprehension, chose to isolate South Africa and our neighbors. Compared to parts of Europe, UK and the Disunited States of America, we have faced this virus with resolve, honesty and optimism. I’m pretty proud of us all!

End of comments.

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