South Africa downgrades projections for economic growth

South Africa’s government unveiled grim budget forecasts, downgrading its projections for economic growth.

Pretoria will cut spending in a bid to reduce debt and narrow budget deficits, South Africa’s Mail & Guardian reported. The latest estimates demonstrate the scale of the challenge facing the country, whose poor public infrastructure — particularly its electricity shortfalls — has curtailed growth and thus tax intake.

Following elections in May, centrist and business-friendly parties were included for the first time in a coalition government, buoying hopes that South Africa could regain economic momentum. Changes are underway, Bloomberg reported, with electricity provision notably improving.