The South African Reserve Bank (SARB) has revised its GDP growth forecast for 2025 downward from 1.7% to 1.2%. The central bank highlighted persistent electricity shortages, declining business confidence, and sluggish global demand as key reasons for the downward revision. In its quarterly Monetary Policy Review, SARB emphasized that the domestic economy remains fragile and is in dire need of structural reforms.

Governor Lesetja Kganyago stressed the importance of tackling load shedding, improving investor confidence, and implementing reforms in sectors such as energy and logistics. The downgrade has reignited calls for public-private partnerships to stimulate investment and create jobs. Despite the challenges, the Reserve Bank said it remains committed to maintaining price stability while supporting growth.