Larry Claasen
3 minute read
20 Jan 2021
7:05 am

‘Difficult year ahead for SA’

Larry Claasen

However, weakness of dollar to rand could boost contribution of exports to GDP.

Picture: Shutterstock

T he outlook for the country’s economy remains grim, says BNP Paribas in its report, South Africa Outlook 2021: Likely headwinds to recovery. It says “energy supply constraints and other structural weaknesses” along with delays in the Covid-19 vaccine rollout, were the reasons it revised its GDP growth forecast downwards for the first half of the year. The French bank has a dimmer economic forecast than other institutions, which also expect the country to struggle. “We maintain our sub-consensus 2021 growth forecast of 2.5% which compares with a current Bloomberg consensus of 3.8%,” says BNP Paribas SA senior economist Jeff...