JOHANNESBURG – The Organisation for Economic Co-operation and Development (OECD) has slashed South Africa’s growth forecast more than half to 0.5 percent for this year from the 1.2 percent it projected in May.
The OECD said escalating trade conflicts were taking an increasing toll on confidence and investment on the global economy.
It said that the global economy was projected to grow 2.9 percent in 2019 and 3 percent in 2020 – the weakest annual growth rates since the financial crisis, with downside risks continuing to mount.
In its latest global economic outlook released yesterday, the OECD said South Africa's gross domestic product would also decline to 1 percent in 2020 from 1.7 percent.
The global policy forum said risks remain that US-China trade tensions will intensify and spill into new areas, further disrupting supply networks, reducing and distorting trade, and weighing on confidence, growth and jobs.