South Africa lowers 2018 economic growth expectations

South Africa’s economic growth this year will be “much lower” than initial expectations, the central bank said in a presentation to parliament on Wednesday.

A statement by the apex bank in Cape Town blamed the drop on “weak and choppy” recovery.

In another development, the South African Reserve Bank said that the one percentage point rise in
South Africa’s value-added tax (VAT) in April has had a more muted impact on inflation than expected.

The bank added that fixed investment was not expected to pick up meaningfully this year, while inflation risks remained on the upside.