South Africa could dramatically boost economic growth if the country fixed its fraying transport network and public electricity utility, the International Monetary Fund said. “If all the structural things are tackled, we believe growth can go up to 2.5% to 3%,” said Max Alier, the IMF’s resident representative to South Africa. South Africa grew 1.9% last year, and activity will slip to just 0.3% in 2023, according to economists polled by Bloomberg.
3% decrease in the unemployment rate is not something to celebrate. He added that the government’s overbearing regulatory frameworks are deterring employers from making new hires, and SA’s economic outlook for the next couple of years means the employment sector is still nowhere close to being out of the woods just yet. Employment levels are still about 74,000 jobs short of the pre-pandemic period.