The International Monetary Fund (IMF) has stated during its sub-Saharan African Regional Economic Outlook for 2023 report in Washington DC, that South Africa’s muted economic growth is expected to drag the prospects of the entire sub-Saharan African region lower in 2023.
South Africa is the most-industrialised economy in the region, however, the IMF maintained its projection that South Africa’s growth would slow down.
The sharp deceleration to 0.1% in 2023, weighed down by worsening power outages; a weaker external environment; and a negative carry-over effect from the growth slowdown at the end of 2022.
South Africa’s lingering energy challenges already slashed at least two percentage points off South African economic growth forecasts for 2023, as intensified power cuts cripple industrial and business activities.
