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IMF Cuts South Africa's Economic Growth Forecast by Almost Half

  • Barclays, Bank of America expect GDP growth of less than 1%
  • Lower commodity prices curbing output in rest of Africa

The International Monetary Fund cut its economic growth forecast for South Africa by almost half to less than 1 percent as commodity prices slump and global demand remains weak.

Gross domestic product in Africa’s most industrialized nation will probably expand 0.7 percent this year, compared with October’s estimate of 1.3 percent, the Washington-based lender said in an update to its World Economic Outlook report on Tuesday. The IMF cut its projection for 2017 by 0.3 percentage points to 1.8 percent.