ZCZC
BCN-03
SAFRICA-GDP
S. African Reserve Bank predicts GDP to grow by 3.6 pct in 2021
JOHANNESBURG, Jan 22, 2021 (BSS/XINHUA) – The South African economy is
expected to grow by 3.6 percent in 2021 following a rebound in the third
quarter of 2020, said South African Reserve Bank (SARB) Governor Lesetja
Kganyago on Thursday.
“Gross domestic product (GDP) is now expected to grow by 3.6 percent in
2021 and by 2.4 percent in 2022. GDP growth of 2.5 percent is expected in
2023,” said Kganyago.
He noted that global growth, vaccine distribution, low cost of capital and
high commodity prices supports the country’s growth.
Despite some very robust terms of trade and stronger exports, it would take
time to return to pre-COVID-19 output levels, Kganyago added.
“Sharply lower public and private investment last year and continued
weakness in 2021 will weigh on growth prospects,” he said, adding that “new
waves of the COVID-19 virus are likely to periodically weigh on economic
activity both globally and locally. In addition, constraints to the domestic
supply of energy, weak investment and uncertainty about vaccine rollout
remain serious downside risks to domestic growth.”
BSS/XINHUA/GMR/1000 hrs