SA economy expected to grow by 1.9% - SARB
The South African Reserve Bank expects the South African economy to grow by 1.9% this year.
"Growth in the first quarter of this year surprised to the upside, at 1.7%," says governor Lesetja Kganyago.
Kganyago says the floods in KwaZulu-Natal and extensive load shedding contributed to a contraction in the second quarter.
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"Growth in the third and fourth quarters is forecast to be 0.4% and 0.3%, respectively.
"The economy is forecast to expand by 1.4% in 2023 and by 1.7% in 2024, above previous projections. Private investment has strengthened on the back of the recovery, but public sector investment remains weak.
"Household spending remains supportive of growth, but is likely to soften next year. Tourism, hospitality and construction should see stronger recoveries as the year progresses."
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He was speaking during Thursday afternoon's rates announcement.
The repo rate is being hiked by 75 basis points to 6.25%.
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