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IMF sees South Africa GDP growth at 4 percent in 2011,2012
South Africa's economy will likely grow by 4 percent this year and next but faces significant downside risks from a slowdown in the developed world, the International Monetary Fund said on Thursday.
In its Article IV report, the IMF said strong local demand will underpin growth in Africa's largest economy, but given the uncertainties globally and locally, it would be prudent to delay interest rate increases.
On fiscal policy, the IMF said South Africa should stick to its plans on spending growth but warned of the sharp rise in the government's wage bill, while adding investment spending has increased "only marginally".
The IMF also said South Africa should focus on moderating real wage growth and increasing competition in order to reduce unemployment.
IMF sees South Africa GDP growth at 4 percent in 2011,2012 - Business LIVE
