JOHANNESBURG – The World Bank has projected that South Africa's economic growth will accelerate only modestly to 1.3 percent in 2019, held back by constraints on domestic demand and limited government spending.
The Bank's forecast compares with the 1.7 percent given by Finance Minister Tito Mboweni in October, while the South African Reserve Bank kept its own prediction unchanged at 1.9 percent in November.
In its "2019 Global Economic Prospects" report released late on Tuesday, the World Bank said growth in sub-Saharan Africa was expected to accelerate to 3.4 percent, despite global expansion being expected the decline to 2.9 percent as trade and investment weaken.
The bank said sub-Saharan Africa's growth outlook was predicated on diminished policy uncertainty and improved investment in large economies, together with continued robust growth in non-resource intensive countries.
Growth in Nigeria is expected to rise to 2.2 percent in 2019, assuming that oil production recovers while a slow improvement in private demand constrains growth in the non-oil industrial sector.