Economics
South Africa's Economy Faces Challenging Future, Kganyago Says
- Reserve Bank doesn't try to act against rand weakness
- Institution remains on rate normalization path, Mminele says
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The South African economy faces a challenging future and is constrained by a lack of certainty about electricity supply, Reserve Bank Governor Lesetja Kganyago said.
“South Africa’s growth outlook is extremely fragile,” Kganyago said at a conference in Johannesburg on Tuesday. “Investment plans could be shelved or delayed because of lack of guarantee of electricity supply. These constraints had contributed to the decline in our estimate of potential output growth.”