South Africa: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for South Africa
IMF Staff Country Reports, July 6, 2017
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- South Africa: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for South Africa
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Bibliographic details
- Published: July 6, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484307557.002
Executive summary
- South Africa’s vulnerabilities have become more pronounced and are set to increase further unless economic growth revives.
- Following near-standstill in economic activity in 2016, growth is projected to increase to 1.0 percent in 2017 and 1.2 percent in 2018.
- The current account deficit is projected to decline to 3 percent of GDP in 2017, boosted by mining and agricultural exports.
- Consumer price inflation recently returned below 6 percent, owing in part to the easing of the drought, and is projected to remain marginally below the upper threshold of the 3–6 percent target band for the remainder of 2017 and in 2018.
Macroeconomic outlook and key projections
- Real GDP growth:
- 2016: near-standstill in economic activity (no numeric growth figure provided).
- 2017: projected to increase to 1.0 percent.
- 2018: projected to increase to 1.2 percent.
- External sector:
- Current account deficit projected to decline to 3 percent of GDP in 2017, supported by mining and agricultural exports.
- Inflation:
- Consumer price inflation recently returned below 6 percent.
- Projected to remain marginally below the upper threshold of the 3–6 percent target band for the remainder of 2017 and in 2018.
Vulnerabilities and implications
- Vulnerabilities:
- The report highlights that vulnerabilities have become more pronounced and are likely to increase further without a revival in economic growth.
- Implication for policy:
- Revival of economic growth is a precondition for stabilizing and reducing the highlighted vulnerabilities.
Thematic coverage (as listed)
- Subjects: Banking, Income, Labor, National accounts, Personal income, Public debt, Revenue administration
- Keywords: Africa, CR, deficit, Global, headline inflation, IMF South Africa team, Income, increase private sector participation, indexation move, ISCR, monetary policy, national minimum wage, Personal income, technical assistance, U.S. dollar
International Monetary Fund. South Africa: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for South Africa (July 6, 2017).
Content in this bundle
- Country Report