The IMF published its assessment of the South African economy, including developments relating to the management of government finances as well as the monetary and financial sectors of the economy.
The assessment was done in terms of the consultations which the IMF holds with its member countries annually as prescribed in Article IV of the Fund’s Articles of Agreement.
Responding to the IMF report, the South African government said it was aware of the risks highlighted by the fund adding that structural reforms were necessary to raise growth and lower vulnerabilities.
“Many of these risks are already addressed in the National Development Plan (NDP) which outlines measures to be taken to boost growth and ensure that the benefits of that growth are equitably shared among all South Africans,” read the Treasury statement.
“Government’s medium-term strategic framework (MTSF) for the period 2014-2019 provides a roadmap to address these challenges.”
South Africa also said measures were underway to address the electricity constraints, by investing in critical infrastructure.
“We are also taking actions to improve labour relations in South Africa, through initiatives such as the Labour Relations Indaba, which the Deputy President hosted on 4 November 2014,” added the statement.
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“South Africa continues to face challenges to support growth and reduce unemployment; however we are taking steps to address this challenge, guided by the NDP.”
However, the country warned that structural reforms were painful in the short-run and it will take time to see the impact of the reforms that are currently underway.