Pretoria - The South African economy is projected to grow by 3.4 percent in 2011, down by 0.1 percent from previous projections, the International Monetary Fund (IMF) said on Tuesday.
In its latest World Economic Outlook (WEO) report update, the IMF said the country's economy is projected to grow by 3.4 percent, a 0.1 percent difference from the IMF's WEO 2010 projections. The South African economy is expected to grow by 3.8 percent in 2012, also down by 0.1 percent from previous projections.
The IMF's projection for growth in 2011 is in line with the Reserve Bank which last week adjusted its figures for 2011 for growth to reach 3.4 percent. The central bank left its projection for 2012 unchanged at 3.6 percent.
According to the report growth in emerging and developing economies remained robust in the third quarter buoyed by well-entrenched private demand, still accommodative policy stances, and resurgent capital inflows.
According to the WEO countries in sub-Saharan Africa have recovered quickly from the global economic meltdown with the region projected to grow 5.5 percent in 2011.
"But the pace of the recovery has varied within the region. Output growth in most oil exporters and low-income countries (LICs) is now close to pre-crisis highs.
The recovery in South Africa and its neighbours, however, has been more subdued, reflecting the more severe impact of the collapse in world trade and elevated unemployment levels that are proving difficult to reduce," it said.
Growth in emerging and developing economies is expected to remain buoyant at 6.5 percent a modest slowdown from the 7 percent growth registered last year. Asia however continues to grow rapidly, it said.
