South Africa: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for South Africa

The 2025 Article IV Consultation discusses that South Africa has faced repeated shocks in recent years, including due to higher global policy uncertainty in 2025. The economy has proven resilient thus far, owing to its ample natural endowments, independent institutions, and strong monetary policy framework. Economic activity is expected to improve gradually over the medium term, while inflation is projected to converge to the new 3‑percent target. Risks remain tilted to the downside, related to continued trade and global policy uncertainty and domestic reform fatigue. Long-standing structural impediments and rising debt continue to constrain resilience and potential growth, highlighting the importance of strong policies and reforms to support macroeconomic stability, employment, and growth. Sustained efforts to tackle governance weaknesses and fight corruption, along with reforms addressing spatial disparities and improving the flexibility of the labor market, are key to lowering unemployment and inequality. Enhancing trade diversification and regional integration can further help support resilience and growth.