South Africa’s economic growth rate to fall below 1%, says IMF

The International Monetary Fund (IMF) has slashed South Africa’s growth forecast to less than 1%.

It expects CPI figures to show an upward trajectory.

Inflation accelerated, as expected, to 5.2% year-on-year in December, from 4.8% in November 2015.

Mike Wills interviewed Lesiba Mothatha, Chief Economist at Investment Solutions.

Scroll down for quotes from the audio below.

Inflation is coming through in a big way.

Lesiba Mothatha

We could easily see inflation at 7.5% by the end of the year.

Lesiba Mothatha

The SARB will be looking to hike interest rates by 50 basis points next week.

Lesiba Mothatha

The Sarb has no choice. There is no debate. All they can do is to hike rates.

Lesiba Mothatha

Export growth, despite the currency, is lackluster.

Lesiba Mothatha

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This article first appeared on 702 : South Africa’s economic growth rate to fall below 1%, says IMF


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