Online Reporter
South Africa’s economy will likely expand at a significantly slower pace than previously anticipated because of domestic political instability and US President Donald Trump’s tariff war, the Bureau For Economic Research said.
The Stellenbosch-based research body on Tuesday lowered its growth forecast for South Africa to 1.5 percent for this year from a previous projection of 2 percent. That matches the median estimate of 27 economists in a Bloomberg survey.
Tensions within the so-called government of national unity — formed after the African National Congress lost its outright majority in last year’s election — are a concern, BER Chief Economist Lisette IJssel de Schepper said at a briefing in Johannesburg on Tuesday.
The BER is worried about whether the coalition government will hold and function effectively, she said.
A dispute over the national budget since February almost caused it to collapse.
Te spending plan has been scrapped twice because of opposition within the coalition over proposals to increase taxes and is now being revised after being suspended by the High Court.
The National Treasury is set to present its third iteration of the budget to lawmakers on May 21. — Bloomberg.
