Consensus among 27 global banks and financial analysis groups shows that South Africa’s economy is expected to grow by 0.7 percent in 2016, according to a new economic report by Focus Economics, BusinessTech reported.
Things will be a bit better in 2017, with the economy expected to grow about 1.4 percent.
Focus Economics provides economic analysis and forecasts for 127 countries in Africa, Asia, Europe and the Americas, as well as price forecasts for 33 commodities. The company is supported by a global network of analysts.
New York City-based investment banking firm Goldman Sachs is the bank most optimistic about South Africa, predicting a growth rate of 1.5 percent.
Colin Coleman, international managing director for Goldman Sachs, said the securities management firm is bullish on South Africa because of the relative lack of competition from other emerging markets and the depth of its capital market. It’s a favorable destination for fund managers, Coleman said, according to an April 2015 MiningWeekly report.
Despite South Africa’s self-inflicted local problems, Coleman said the country has the region’s deepest capital markets (measured as market capitalization of the Johannesburg Stock Exchange divided by gross domestic product.)