A reduced economic growth forecast for South Africa has been issued by the International Monetary Fund (IMF), with the 2025 projection being cut from 1.5 percent to 1 percent.
This adjustment was included in the IMF’s latest World Economic Outlook report released on Tuesday, April 22, where heightened tariff levels and a volatile global environment were cited as primary contributing factors. The 2026 forecast was also lowered to 1.3 percent, down from an earlier projection of 1.5 percent.
According to Dawie Roodt, a senior economist at the Efficient Group, the downward revision had been anticipated due to escalating trade tensions and global market uncertainty. The agricultural and automotive sectors, which contribute significantly to South Africa’s export earnings—particularly through trade with the United States—are now considered to be at heightened risk. Substantial damage to these industries is expected should tariff barriers remain in place or intensify.
The issue is anticipated to receive considerable attention during this week’s Group of 20 Finance Ministers and Central Bank Governors’ meeting in Washington. Tariffs and their widespread economic repercussions are expected to be a focal point, with discussions likely to extend to matters involving the global financial architecture, including international payment and reserve systems. Calls for coordinated responses to mitigate these challenges are expected to be raised by participating nations.