World Economy

S. Africa Growth to Remain Slow

S. Africa Growth to Remain SlowS. Africa Growth to Remain Slow

Economist ýand chief strategist at Investment Solutions, Christ Hart, has warned that the South African economy will continue to grapple with slow growth and high inflation in 2016, NewsNow reported. This will be a huge challenge for the reserve bank which will be forced to continue to raise interest rates. The South Africa economy has been shrinking and failing to create the much-needed jobs. Hart said, “Probably we are going to have to raise interest rates against that slow back drop, so we will probably see interest rate hikes at every second meeting. So again in March, we will see a rise of a quarter percent and then four months later, another quarter percent and then again in November. I think if the US is basically going to start easing monetary policy by the end of the year which is what I expect, the last rate hikes in South Africa may not necessarily materialize.”