The global and South African financial institutions have predicted an increase in South Africa’s economic growth at an average of 1.2% in 2024 compared to 0.6% in 2023.
The growth depends on the GDP growth of eight large globally and locally well-respected financial institutions, which include Standard Bank, the South African Reserve Bank (SARB), the National Treasury, the International Monetary Fund (IMF), the World Bank, and South Africa’s Big Four Banks – Absa, FNB, and Nedbank.
However, the highest projection is expected from FNB and the National Treasury, with a 1.3% GDP growth rate.
The National Treasury February 2024 budget states that GDP growth has been, on average, 0.8% since 2012, which is insufficient to address high levels of unemployment and poverty.
The budget stated that “Long-term growth is highly dependent on improving capacity in energy, freight rail and ports and on continuing to reduce structural barriers to economic activity.”
It also stated that one of the strategies that economic growth prioritizes is structural reformation and improvements in state capability to raise growth rates sustainably.
The SARB attributes the low growth of South Africa in 2023 to supply-side issues, including electricity load, port, and rail issues. However, the South African economy is expected to have a 1.2% GDP growth in 2024.
SARB said its prediction is a modest yearly growth as the supply-side constraints relax.
Also, the World Bank predicted 1.2% growth for South Africa in 2024, highlighting the predominant issues that would draw back the country.
The IMF’s latest World Economic Outlook report stated that South Africa experienced a bleak output this year after the IMF slashed its growth outlook to 1% from 1.8% in January.
The slashed has further reduced South Africa’s growth outlook, taking off another 0.1 percentage points and 0.9% for the year.
