22-Sep-2010 1:22 PM

IMF raises GDP forecast for South Africa

International Monetary Fund raised (21-Sep-2010) its 2010 growth forecast for South Africa to 3.2% and encouraged the government to consider tax breaks for companies hit by an “overvalued” rand. IMF stated the economy would likely expand 3.6% in 2011 and 3.9% in 2012, up from forecasts of 2.6% growth in 2010. The South African economy has rebounded from its first recession in 17 years after interest rates were reduced to a 30-year low and global demand for exports increased.