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South Africa Is Likely to Miss Economic Growth Forecast for 2021

  • Travel bans are expected to weigh on fourth quarter output
  • Government had projected economy would expand 5.1% this year

South Africa’s economic growth forecast of 5.1% for 2021 is at risk after more than 90 nations imposed travel bans on the country right before its summer holiday season because of the discovery of the coronavirus omicron variant. 

The economy grew 5.8% in the nine months through September, data published by Statistics South Africa on Tuesday shows. While that placed the nation on track to exceed the government’s growth forecast of 5.1% for 2021 and the central bank’s 5.2%, the travel bans and the emergence of the new Covid-19 strain will likely temper the recovery as spending on tourism drops.