Power Cuts, Debt Pose Biggest Risks to South Africa’s Economic Outlook
- Sees economy growing 1.4% in 2024 from 0.7% forecast for 2023
- Ranks nation poorly in debt sustainability risk assessment
Employees work at a sewing machine, powered by a generator, during a load-shedding power outage in Cape Town, South Africa.
Photographer: Dwayne Senior/BloombergThis article is for subscribers only.
The biggest risks to South Africa’s 2024 economic outlook may come from insufficient power supply, strains on debt sustainability and the erosion of state legitimacy ahead of elections, according to Allianz SE.
The global financial services giant estimates that South Africa’s economy will expand 1.4% this year from 0.7% forecast for 2023, but a lack of reliable electricity supply poses the heaviest drag on growth.