South Africa’s economic growth projection could be revised upwards later this year

Africa’s most industrialized economic growth forecast will probably be revised upwards following the announcement of its medium-term budget outlook in October.

Confirming this in a Bloomberg report while speaking at a union meeting in Pretoria on Monday, South Africa’s Finance Minister, Nhlanhla Nene said “We do not want to be overly optimistic about these numbers. At the moment they are penciled in, but we are likely to revise these numbers upwards come the medium term budget in October.”

With improvement in agriculture and increase of investor confidence, South Africa’s Treasury projected GDP growth to expand at 1.5 percent in 2018, a 0.5 percent increase from that of the previous year.

Having suffered from low business and consumer confidence as result of political and policy uncertainty, the South African economy has been struggling to grow in recent years.

The coming to power of President Cyril Ramaphosa who succeeded Jacob Zuma in February has however, increased business confidence and reduced the strain of debt service costs.

In a bid to further increase economic growth in the country, the government is in the process of finalizing reforms which would help foster faster economic growth, through the 2018/19 budget delivered in February.