IMF sees lacklustre South African growth in medium term

Following the end of a consultation with SA.
Image: Andrew Harrer/Bloomberg

South Africa’s economic recovery remains fragile and growth is expected to hold below 2% in the medium term because of policy uncertainty, high public debt and constraints to investment, the International Monetary Fund (IMF) said on Friday.

In a statement issued at the end of discussions with South Africa, the IMF said the country’s recovery from the COVID-19 pandemic had been faster than expected, but its durability remains uncertain.

Economic growth is projected at 1.9% in 2022 after an estimated 4.6% rebound in 2021, but it is seen easing to 1.4% in the medium term, the IMF said.

“The economic recovery is deemed fragile, as it was accompanied by worsening unemployment, weak bank lending to the private sector and anaemic private investment. Despite the growth rebound, poverty and inequality did not show signs of improvement,” it said after a so-called Article IV consultation with South Africa.

IMF directors commended the government for a strong policy response to the pandemic, but outlined a variety of areas requiring improvement.

It said the looming budget on Feb. 23 provides an opportunity for concrete measures to contain public sector wages, rationalise bailouts of state companies, streamline tax expenditure and better target education subsidies.

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Capitalism is the only system in history where wealth was not acquired by looting, but by production, not by force, but by trade, the only system that stood for man’s right to his own mind, to his work, to his life, to his happiness, to himself. —A Rand

As long as we have socialist maniacs in charge of government any real growth is IMPOSSIBLE !!!!

It is clear that there are 2 different drivers of creeping socialism. Stupid greed is the strongest, and false philanthropy is the most persistent.

Stupid greed is based on envy, jealousy, and laziness, and it is unsustainable and counterproductive. These greedy criminals use the ignorant and naive false philanthropists, academics mostly, as part of their plan to plunder the resources of the nation.

The false philanthropists are very dangerous because they use the woke ideas of social justice, equality, redistribution, and “fairness” to force other people to fund their socialist ideals. The false philanthropists bastardize the law to spend other people’s money, never their own. They are the worst kind of plunderers who claim the moral high ground, while they are the cowardly lowlives of society. They are the culprits who use their woke ideals as a Trojan Horse to smuggle the plundering criminals into positions of power.

These two forces rely on each other as they parasitize society.

Socialism needs to pull down wealth; liberalism seeks to raise up poverty. Socialism would destroy private interests, Liberalism would preserve [them] … by reconciling them with public right. Socialism would kill enterprise; Liberalism would rescue enterprise from the trammels of privilege and preference. Socialism assails the preeminence of the individual; Liberalism seeks … to build up a minimum standard for the mass. Socialism exalts the rule; Liberalism exalts the man. Socialism attacks capitalism; Liberalism attacks monopoly.

WC

“… lacklustre South African growth in medium term” Only lacklustre … not desultory or abysmal.

Phew! That’s positive compared to Zimbabwe etc. Now I can relax over the weekend with some nice chilled Chenin Blanc.

In fact I might start right now …

When your population growth exceeds your GDP growth you know where the car is going to run of road on that down hill

It is very concerning that the committee deliberating a BIG have reducing the Gini as a goal of BIG. They simply do not get it at all. Reduce the macro picture to a micro of a single company. Tim Allen earns an obscene amount of money relative to the average Apple employee. Apple also employs an obscene number of people now versus twenty years ago and they do all earn very comfortable incomes. On that committee logic it would have been better to flatten Apple’s Gini and rather have 8,000 employees earning a flat scale than almost 200,000 now all earning nicely but with a very high internal Gini.

End of comments.

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