(3 minutes read)
- SA’s recovery from its deepest economic contraction in almost three decades may be stalled due to the fallout from a fourth wave of coronavirus infections due to threat from the Omicron variant, according to a Bloomberg report
- According to the agency, GDP will expand 4.9% in 2021, as against the previous estimate of 5.1%
- South African economy is now expected to grow by 2% next year and 2.1% in 2023
SA’s recovery from its deepest economic contraction in almost three decades may be stalled due to the fallout from a fourth wave of coronavirus infections due to threat from the Omicron variant, according to a Bloomberg report.
According to the agency, GDP will expand 4.9% in 2021, as against the previous estimate of 5.1%. The South African economy is now expected to grow by 2% next year and 2.1% in 2023.
These are the results compiled by Bloomberg after surveying economists, a usual exercise being conducted by the wire agency. Over 90 countries imposed travel bans on SA ahead of its summer holiday season due to Omicron. The output fell more than expected in the third quarter. Before the onset of the new strain. The government and central bank predicted the economy would grow by 5.1% and 5.2% respectively this year.
The pandemic and ongoing electricity supply constraints remain as major risks to the economic outlook. The long-awaited structural reforms that Finance Minister Enoch Godongwana promised will be rolled out by mid-February only. This, perhaps, could bolster output from the new year.
