The World Bank has cut the forecast of South African growth for the rest of 2018 due to the recession, high levels of unemployment and a lower credit rating, initially the forecast to be 1.4% and now has been revised to 1%.
The World Bank has also reduced the forecast of economic growth for the rest of Southern Africa. The problem is not just the economic constraints within the South Africa economy but also external trade factors compounding the situation.
Globally South Africa has suffering from trade uncertainty and weakening demand for the locally made products, the oil supply is also becoming stringent as well as prices increases adding to the problem. The prices of metals is also expected be steadily decrease as demand from China falls.
The Jobs Summit taking place today is aiming to fix some of these problems, spur on job growth and create work opportunities in the market to reduce the almost 10 million unemployed South Africans.