Cover IMF Staff Country Reports
Buy Book in Print
South Africa: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for South Africa
Author:
International Monetary Fund. African Dept.
Search for other papers by International Monetary Fund. African Dept. in
Current site
Google Scholar Close
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2025: Issue 028
Language:
English
Publication Date:
30 Jan 2025
DOI:
https://doi.org/10.5089/9798229000048.002
ISBN:
9798229000048
ISSN:
1934-7685
Pages:
128
Keywords:
support policy credibility; headline inflation; debt management strategy; Policy recommendation; implementation framework; Policy credibility; Government debt management; Exchange rate arrangements; Currency markets; Africa; Global; private sector; short-term debt; Financial sector stability; Inflation
Download PDF (6.2 MB) Download Epub
The 2024 Article IV Consultation discusses that South Africa’s economy has continued to face challenges in recent years. Government’s fresh mandate represents an opportunity to pursue ambitious reforms to safeguard macroeconomic stability and address these challenges, placing the economy on a path toward higher, more inclusive, and greener growth. Real output growth, estimated at 0.8 percent in 2024, is expected to accelerate to 1.5 percent in 2025 on the back of improved electricity generation, monetary policy easing, and a return of investor and consumer confidence post elections. Growth is projected to reach 1.8 percent by the end of the decade, supported by ongoing electricity and logistics reforms, while inflation stabilizes around the midpoint of the central bank’s target range. Ongoing electricity and logistics reforms aiming at alleviating critical supply constraints are welcome and should be ambitiously implemented. Meeting South Africa’s climate goals requires further efforts to increase effective carbon taxation and accelerate the rollout of renewable energy. Adequate communication, targeted support to vulnerable groups to mitigate near-term costs, and strengthened institutions, are key to increase the social acceptability of reforms.
  • Collapse
  • Expand
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund