Minister of Finance Enoch Godongwana. The World Bank forecast is also 0.4 percentage points lower than the institution's January projection of 1.4%, reflecting the fallout from the ongoing conflict in the Middle East and its impact on global markets.
South Africa's fragile economic recovery is set to remain under pressure over the next two years, with the World Bank forecasting slower growth amid rising global uncertainty, higher energy prices and weaker international demand.
In its latest Global Economic Prospects report released on Thursday, the World Bank revised South Africa's economic growth forecast for 2026 down to 1.0%, from an estimated 1.1% in 2025.
The forecast is also 0.4 percentage points lower than the institution's January projection of 1.4%, reflecting the fallout from the ongoing conflict in the Middle East and its impact on global markets.
The report paints a challenging picture for the global economy, with world growth expected to slow to 2.5% in 2026 from 2.9% in 2025, marking the weakest expansion since the COVID-19 pandemic.
