South Africa to Raise GDP Growth Forecasts in October, Nene Says
- Economy is forecast to expand 1.5% this year, Treasury says
- ‘Prospects look good’ for an improvement in growth: minister
The Volkswagen AG plant in Uitenhage, South Africa.
Photographer: Waldo Swiegers/BloombergSouth Africa’s National Treasury will probably raise projections for economic growth this year in its October mid-term budget as the country overcomes governance and financial problems that have lowered confidence, Finance Minister Nhlanhla Nene said.
Newly appointed president Cyril Ramaphosa reappointed Nene to the role last month. When former leader Jacob Zuma fired him and replaced him with a little-known lawmaker in 2015, the move triggered a sell-off in the rand and bonds. Policy uncertainty and state graft concerns saw Fitch Ratings Ltd. and S&P Global Ratings lowered their assessments of the nation’s debt to junk. The economy slumped into a recession in 2017 and has mounted a fragile recovery since.