South Africa’s GDP growth will expand by just 1.3% in 2019, according to a World Bank projection, putting it among the worst performers in sub-Saharan Africa.
The bank downgraded the country’s projected 2019 growth rate from its June 2018 estimate of 1.8%.
It is also well below the projected sub-Saharan average of 3.7%.
The bank said that growth in 2019 would remain subdued due to a combination of challenges in mining production, low business confidence and policy uncertainty.
“High unemployment and slow growth in household credit extension are expected to constrain domestic demand in 2019, while fiscal consolidation limits government spending,” said the bank.
It expects GDP to increase by 1.7% in 2020 and 1.8% in 2021.
Global growth is expected to slow to 2.9 percent in 2019.
International trade and investment are moderating, trade tensions remain elevated, and financing conditions are tightening.
Amid recent episodes of financial stress, growth in emerging market and developing economies has lost momentum and is projected to stall at 4.2 percent this year, with a weaker-than-expected rebound in commodity exporters accompanied by deceleration in commodity importers.