SARB concerned over SA’s slow economic growth
The South African Reserve Bank says it is concerned by South Africa's slow economic growth.
Governor Lesetja Kganyago spoke at the SARB's annual ordinary general meeting of shareholders on Tuesday.
"Despite varied sectoral performances, output in the South African economy slowed to 0.7% in 2023 from 1.9% in 2022, and remains well below growth in peer emerging markets,” he said.
Kganyago explained that various factors have been weighing heavily on economic activity, impacting domestic spending and investments.
READ: TotalEnergies withdraws from two SA gas fields
"Job creation has been too slow and not enough to offset the growth in the labour force, leaving the unemployment rate elevated at 32.9% in the first quarter of this year. South Africa’s tailwind for growth coming from strong terms of trade continued to fade despite still remaining at historically good levels.
"Exports also suffered over the past 12 months from energy and logistics challenges as much as price factors. Imports were also muted by logistics. As energy and logistics constraints continue to ease, the growth outlook will also improve."
Despite the slow growth, Kganyago says the domestic economy is expected to grow by 1.1% this year, rising to 1.7% by 2026.
Core inflation is also expected to average 4.6% this year, from 4.8% last year.
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