The World Bank is expecting a mild improvement in SA’s economic growth but warns that the country is lagging its peers.
According to a report released on Tuesday‚ growth is expected to accelerate from 1.3% in 2017 to 1.4% in 2018 and 1.8% in 2019.
“The rebound in emerging markets is faster. SA is diverging from the rest of the world‚” said World Bank programme leader Sebastien Dessus.
Despite the rebound‚ the Bank warned that SA is expected to remain below the average growth rate of 4.5% in 2018 and 4.7% in 2019 in emerging markets.
Speaking at the IFC offices in Illovo‚ World Bank country director for SA Paul Noumba Um said: “The outlook calls for fundamental policy action to turn the economy around through policies that can foster inclusive growth and reduce inequality.”
He added that creating labour demand and improving education as well as addressing spatial integration were key to bridging the gap with the poor.
He stressed that SA remained one of the most unequal societies in the world‚ which has been “driven by labour market developments that demand skills the country’s poor currently lack“.
With interventions that focus on skills development‚ the Bank estimates that the poor could be reduced from 10.5m in 2017 to 4.1m in 2030. Dessus said that quality and access to basic education was pivotal.
by Sunita Menon -BusinessLIVE