The International Monetary Fund (IMF) has left SA’s 2016 economic growth forecast unchanged but cut the outlook for 2017‚ citing the effects of lower commodity prices‚ high unemployment and policy uncertainty on the economy.

SA’s economic outlook was “clouded by policy uncertainty and political risks‚” the global lender said in its World Economic Outlook report released on Tuesday. The document gives an update on global economic developments and projections for world growth.

It left the 2016 growth forecast for SA at 0.1% but lowered that for 2017 to 0.8% from the 1% it projected just two months ago‚ reports Business Day (http://www.bdlive.co.za/economy/2016/10/04/imf-cuts-sas-2017-growth-forecast-due-to-joblessness-and-economic-uncertainty).

The country’s growth and employment could be boosted by the implementation of a comprehensive structural reform package that fostered greater product market competition‚ more inclusive labour market policies and industrial relations‚ and improved education and training‚ as well as reduced infrastructure gaps‚ the IMF said.

“Measures to improve state-owned enterprises’ efficiency and governance‚ including through greater private participation‚ are a particularly important element of the needed reform package to lift growth prospects and reduce contingent fiscal risks‚” the fund said. — TMG Digital