World Bank lifts SA GDP forecast on energy, logistics

The World Bank raised its economic-growth forecast for South Africa because of a sustained recovery in its energy and logistics sectors, while warning that the nation will struggle to achieve a pace of expansion needed to reduce poverty and unemployment.

- Ntando Thukwana

The Washington-based lender boosted its gross domestic product growth projection for 2025 to 1.8%, from 1.3% previously, according to its South Africa Economic Update report published yesterday. The bank expects growth to accelerate to 2% by 2027.

"Such recovery, albeit modest, will be driven by improved infrastructure services and a relatively favourable external environment," it said.