PRETORIA- The Central Bank said that South Africa’s recent economic growth turnaround is unlikely to last as 2017’s boom fades and the outlook for reform remains unclear.
The South African economy surprisingly grew by 1% in 2017, as the agriculture sector recovered from the drought in 2016 and Treasury predicts a 1.5% growth for this year.
The Reserve Bank said in its latest Monetary Policy Review document, “The pickup in growth is not especially strong, however, and growth remains below long-term averages,”
The bank added, “This is mainly because, at this early stage, there is little clarity around the reform agenda, and without specifics it is difficult to quantify growth responses,”
The bank is looking for “meaningful reforms”, as growth is predicted to unlikely to go further than 2%.
Data released on Tuesday showed that South Africa’s factory output missed estimates for February, after a five months of strong growth, pointing to a slow recovery in the economy.
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