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

Subscribe to our Business Wrap Newsletter


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


CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
EOH CEO Zunaid Mayet explains why the share price tanked

EOH CEO Zunaid Mayet explains why the share price tanked

The Money Show’s Bruce Whitfield interviewed Mayet.

'This puts pressure on Jacob Zuma to vacate office earlier'

'This puts pressure on Jacob Zuma to vacate office earlier'

The Money Show’s Bruce Whitfield interviews Daniel Silke, Political Economy Analyst at Political Futures Consultancy.

Learn how to code, for free! Meet WeThinkCode_’s Arlene Mulder...

Learn how to code, for free! Meet WeThinkCode_’s Arlene Mulder...

Interested in attending a free, two-year course in computer programming? Bruce Whitfield interviews the cofounder of WeThinkCode_.

How Futuregrowth Asset Management dodged the Steinhoff bullet

How Futuregrowth Asset Management dodged the Steinhoff bullet

The Money Show’s Bruce Whitfield interviews Futuregrowth Asset Management Chief Investment Officer Andrew Canter.

Commodities could remain cheap for another 15 years – economist Mike Schussler

Commodities could remain cheap for another 15 years – economist Mike Schussler

We are now firmly in a downward commodities super cycle that may last for another 15 years, says Mike Schussler in his latest column.

Government vows to ‘intervene more decisively’ to speed up economic growth

Government vows to ‘intervene more decisively’ to speed up economic growth

Nazmeera Moola, Economist and Strategist at Investec Asset Management, discusses Thursday’s cabinet meeting.

Popular articles
Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Watch the Guptas pack their bags and run in Nando's inspiring new advertisement.

PSG Chair Jannie Mouton opens up (kind of) about Steinhoff

PSG Chair Jannie Mouton opens up (kind of) about Steinhoff

In 2012 Steinhoff acquired 20% of wealth manager PSG, reportedly infuriating Mouton. Bruce Whitfield interviews him.

[LISTEN] Sara-Jayne King overjoyed at finding her biological father

[LISTEN] Sara-Jayne King overjoyed at finding her biological father

After a 702/ CapeTalk interview, the author of the autobiographical book Killing Karoline spoke to her dad for the first time.

[LISTEN] Caller challenges Eusebius on land disposition

[LISTEN] Caller challenges Eusebius on land disposition

‘I need you to provide me with an answer' - John from Edenvale, Gauteng

Number of South Africans visiting the seaside has dropped

Number of South Africans visiting the seaside has dropped

Fedhasa's CEO is encouraging South Africans to take a look at the specials that are currently out there and make their bookings.

How businessman Max Lichaba struck gold with his jewellery company

How businessman Max Lichaba struck gold with his jewellery company

Entrepreneur Max Lichaba built his own empire and is the CEO of Lichaba Creations and several other businesses. This is his story.