IMF forecasts high growth

The International Monetary Fund (IMF) expects the South African economy to grow at a rate of between 3.8 percent and 4 percent over 2000 and 2001, news reports said. The projections are higher than the government's own forecasts of growth of between 3.5 percent and 3.1 percent for the next two years. The IMF said the strong forecast growth, was possible because "the fiscal deficit has declined more rapidly than expected, monetary risks have been reduced, and interest rates have fallen, providing a favourable context for the introduction of the planned inflation targeting framework". The IMF said it expected growth in Africa to reach 4.4 percent this year, and to remain at that level in 2001. "A rebound of activity in three of the largest economies, Algeria, Nigeria, and South Africa, is expected to lead this recovery, but also significant is the continuing strong performance projected for many of the smaller countries including Ghana, Tanzania, Tunisia, and Uganda."