JOHANNESBURG- The World Bank on Tuesday raised its 2018 economic growth forecast for South Africa to 1.4%, from an earlier forecast of 1.1% growth.
The international lender said what influenced their decision was the improved forecast supported by the rise of confidence in global growth and benign inflation.
In March the ratings agency S&P raised its GDP growth forecast for South Africa from 1% to 2% for 2018, and 2.1% for 2019, from 1.7%.
It raised its forecast due to strengthening domestic and foreign investor sentiment after the change in the country’s leadership and new policy announcements.
S&P says an ongoing global upturn is also boosting demand for both commodities and manufactured goods.
The structural challenges still remain even with boosted confidence and foreign investment.
Photo Credit- BusinessTech
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