JOHANNESBURG, 22 January, 2021, (TON): The South African economy is expected to grow by 3.6 percent in 2021 following a rebound in the third quarter of 2020, said South African Reserve Bank (SARB) Governor Lesetja Kganyago on Thursday.

Kganyago said, "Gross domestic product (GDP) is now expected to grow by 3.6 percent in 2021 and by 2.4 percent in 2022. GDP growth of 2.5 percent is expected in 2023."

He added that global growth, vaccine distribution, low cost of capital and high commodity prices supports the country's growth.

Despite some very robust terms of trade and stronger exports, it would take time to return to pre-COVID-19 output levels, said Kganyago.

"Sharply lower public and private investment last year and continued weakness in 2021 will weigh on growth prospects," he said, adding that "new waves of the COVID-19 virus are likely to periodically weigh on economic activity both globally and locally. In addition, constraints to the domestic supply of energy, weak investment and uncertainty about vaccine rollout remain serious downside risks to domestic growth."

South Africa and Nigeria, the two largest economies in the region, saw output fall sharply in 2020 and agriculture growth slowing. Both countries also saw a dramatic drop in per capita income, which has pushed tens of millions more people into extreme poverty.