Reserve Bank Predicts 1.7 Growth For Local Economy Despite Risks

The South African Reserve Bank SARB is forecasting growth to rise to 1.7 percent in 2025, despite the downside risks.

The central bank released its monetary policy review for April 2025 noting that South Africas growth remains below its historical average of 2.5.

Estimates for this year are also far lower than the average for emerging markets of 4.2.

The SARB suggests that domestic growth can be boosted further by adopting policy measures that permanently lower inflation risks and strengthen competitiveness.

Reserve Bank Governor Lesetja Kgyango says: Here at home, we have seen significant progress on this inflation since last October, along with notable headway on the energy and logistics front with inflation and inflation expectations that have behaved. We lowered borrowing costs and this will support economic activity.