The South African Reserve Bank (SARB) has reported an improved economic growth forecast for 2025, projecting a growth rate close to 2%, up from the 1.1% anticipated for 2024. This optimistic outlook is attributed to the formation of a broad coalition government, including the Democratic Party and other political groups. However, SARB Governor Lesetja Kganyago cautioned about potential inflationary risks stemming from protectionist policies and fluctuations in oil and food prices. While the annual inflation rate stood at 2.9% in November, below the central bank’s target range of 3% to 6%, it is expected to average around 4.5% in 2025.
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