JOHANNESBURG, Jan 20 (Reuters) - The International Monetary
Fund (IMF) on Monday lowered its growth forecasts for the South
African economy in 2020 and 2021, citing structural constraints
and deteriorating public finances.
The IMF now sees the economy growing at 0.8% this year, down
from a previous forecast for 1.1% growth, and 1.0% in 2021, down
from an earlier prediction for 1.4% growth.
South African President Cyril Ramaphosa has tried to revive
Africa's most industrialised economy after a decade of slow
growth, but he has found it hard to push through much-needed
reforms and rein in rapidly rising debt levels.
In recent months, nationwide power cuts that have dented
economic output and sapped investor confidence in the economy.
Ailing state-owned utility Eskom, which generates more than
90% of the country's electricity, is struggling to meet demand
because of breakdowns at its coal-fired power plants.
In an update to its World Economic Outlook, the IMF also
maintained its growth projections for the continent's largest
economy Nigeria at 2.5% for this year and next.
Nigeria has been recovering slowly from a 2016 recession,
thanks partly to a recovery in its crucial oil sector.