IMF cuts South Africa's 2026 growth forecast to just 1%

The International Monetary Fund reduced South Africa’s gross domestic product growth forecast to 1.0% for 2026 in its October World Economic Outlook, reversing the slight mid-year optimism that followed temporary ceasefire negotiations in the Middle East. The downgrade follows disruptions from conflict in the Middle East and energy market volatility that have weighed heavily on emerging markets. A growth rate of just 1.0% presents a major obstacle for the country's employment goals, as policymakers target expansion above 3% to reduce the national unemployment rate of 33.6%. With growth remaining sluggish, households face ongoing pressure on living standards, while state revenues will face constraints ahead of the upcoming medium-term budget. Also in this briefing: Former deputy police commissioner Sibiya receives dishonourable discharge amid criminal charges; Public order police deployed in Durban CBD as Mashatile warns against vigilantism; Climate activists removed from African Energy Week as Cape Town debates gas drilling.

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