IIF cuts South Africa 2026 growth forecast to 1.3 percent
The IIF cut South Africa's 2026 growth outlook to 1.3 percent as Middle East tensions raise energy costs. Markets now price in two interest rate hikes.
The Institute of International Finance cut its 2026 growth forecast for South Africa to 1.3% from 1.7% on Tuesday. The revision follows escalating Middle East conflict that has raised energy costs and complicated local monetary policy. Investors face a shift in interest rate expectations and widening deficits as geopolitical tensions disrupt trade routes.
### Energy Costs Pressure Inflation Outlook The IIF expects inflation to average 4% this year, up from previous estimates of 3%. Rising costs for Brent Crude Oil and refined products drive this shift as South Africa relies more on Gulf suppliers.
