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South Africa `Flirting' With Recession, World Bank Says

  • Growth forecast lowered to 0.8 percent from 1.4 percent
  • Poverty rate to rise due to drought and economic slowdown
Updated on

South Africa’s economy is at risk of falling into recession, the World Bank said, as it cut the nation’s growth forecast for this year to 0.8 percent.

The economy is “flirting with stagnation, if not recession,” the lender said in a report released on Tuesday in the capital, Pretoria. This year’s growth estimate was cut from 1.4 percent, while next year’s projection was lowered to 1.1 percent from 1.6 percent.